Lenders are withdrawing many of their mortgage offers – sometimes with less than an hour’s warning – as severe funding constraints mean that they are unable to meet demand for the most competitive deals. Financial Times (Saturday)
Brokers had as little as 10 minutes’ notice on Thursday when Scottish Widows removed the bulk of its mortgage range.
Some borrowers have agreed mortgage deals only to see them disappear from the market just hours before completing their applications.
The root of the problem is unprecedented volatility in the mortgage markets.
Three-month Libor climbed to 5.93%, its highest level since the start of the year. 'Certain lenders are pulling deals at extremely short notice,' said Paul Welch, managing director of Clegg Gifford Private Clients, the mortgage broker. 'So few lenders are in the market now that those left just cannot cope with the business.'