First Direct pull 5 year Fixed Rates

Thrugelmir

As of 6.00pm last night First Direct pulled all 5 year 65% LTV mortgage products from the market. Currently offering no replacement.

Sign of money market rates rising?

Really2

Thrugelmir wrote: »

As of 6.00pm last night First Direct pulled all 5 year 65% LTV mortgage products from the market. Currently offering no replacement.

Sign of money market rates rising?

They still have them on their website?
http://mortgages.firstdirect.com/mortgage-products/first-time-buyer-mortgage

Maximum Loan to Valuation (LTV) of 85%
2 Year Fixed Repayment
5 Year Fixed Repayment
Maximum Loan to Valuation (LTV) of 75%
2 Year Fixed Repayment
5 Year Fixed Repayment
Maximum Loan to Valuation (LTV) of 65%
2 Year Fixed Repayment
2 Year Fixed Repayment
5 Year Fixed Repayment

The_White_Horse

wonder what that means? that rates are gonna go up?

Graham_Devon

Simply means they don't want to offer the other type of mortgages, and therefore clients.

I can only assume, as they do still offer a mortgage which is far more secure for the bank, they simply don't want to expose themselves to the risk of lending outside of 65% LTV's at this moment in time but are happy to concentrate on the more secure lending for them.

The_White_Horse

this makes no sense. how can offering loans on 75% LTV be more secure for them than offering to those with 65% LTV?

still doesn't answer why 5 yr deals are being scrapped.

Thrugelmir

Really2 wrote: »

They still have them on their website?
http://mortgages.firstdirect.com/mortgage-products/first-time-buyer-mortgage

Maximum Loan to Valuation (LTV) of 85%
2 Year Fixed Repayment
5 Year Fixed Repayment
Maximum Loan to Valuation (LTV) of 75%
2 Year Fixed Repayment
5 Year Fixed Repayment
Maximum Loan to Valuation (LTV) of 65%
2 Year Fixed Repayment
2 Year Fixed Repayment
5 Year Fixed Repayment

They were pulled last night.

Thrugelmir

Finally on the wires.

First Direct has become the latest lender to withdraw its range of fixed-rate mortgages from the market, including its best buy five-year fix at 3.89 per cent.
The lender pulled a number of its two and five-year fixed-rate loans, which were available up to 65 per cent loan-to-value, on Tuesday, blaming a rise in swap rates - the rate at which banks lend to each other - and a surge in demand from customers.
Yorkshire Building Society also confirmed that it would increase rates on its three-year, five-year and ten-year fixed-rates by up to 0.20 per cent on Thursday.
Last week, Skipton Building Society withdrew its entire range of competitive five-year fixed-rate mortgages and increased rates significantly.
This has led mortgage brokers to urge homeowners who want to fix their mortgage rate to act sooner rather than later because lenders are increasingly withdrawing their best fixed rates and replacing them with more expensive deals.
The cheapest five-year fix currently available is Natwest’s 3.95 per cent, available for up to 50 per cent loan-to-value with a £699 fee.
Fixed-rate mortgages have become more attractive to borrowers because of the low rates on offer and the growing likelihood that interest rates will rise this year.
Mortgage brokers say they have seen an increase in borrowers opting for fixed-rate deals over the past few weeks. This is likely to increase even more following the latest inflation figures published on Tuesday, which showed that the Consumer Price Index (CPI) jumped to its highest level in eight months last month, adding pressure on the Bank of England to raise interest rates.
“The speculation over inflation and the likelihood of rising interest rates is already having an impact on fixed-rate mortgages, as lenders continue to withdraw deals and ratchet up the rates,” said David Hollingworth of London & Country, the mortgage broker.
“Borrowers eager to lock in at the keenest rates will need to move fast to avoid missing out.”

http://www.ft.com/cms/s/2/69340e42-2321-11e0-b6a3-00144feab49a.html#axzz1BPcMDfSS

Really2

Thrugelmir wrote: »

Finally on the wires.



http://www.ft.com/cms/s/2/69340e42-2321-11e0-b6a3-00144feab49a.html#axzz1BPcMDfSS

That does not say they are pulling all 5 years and not replacing them. It says they are pulling the rates and replacing them with more expensive ones.
The site now has 75% and 85% products.

vivatifosi

Interesting, thanks thrugelmuir. We took a five year fixed a couple of months back through HSBC, though the rate has gone up a little:

https://mortgages.hsbc.co.uk/product/A004026003004026004004026005-5-year-fixed-special

I guess it depends on the sum outstanding though as to whether 3.99% fixed for five years with a £99 booking fee at 60% LTV is better than the NatWest one mentioned at 3.95% fixed for five years with a £699 booking fee.

Pimperne1

Those are cracking rates and I am surprised to see any rates that low. Those currently procrastinating should be wary of missing the boat as far as the best fixed rates goes.

Batchy

does it matter... loads of other mortgage companies.