More fixed rate mortgages disappearing

Our prediction that fixed rates would cease to exist this year is proving quite accurate, at the time we took quite a beating for making such a ‘drastic’ call in our Mortgage Market Trend Outlook report.

So far, PTsb have removed them and now Haven (and likely EBS) are set to do the same. We received notice today (see below)

The concern from a borrowers perspective is that we are getting to a point where you can’t fix a mortgage and you will be forced to ride the rate hikes that banks come up with including any that come from the ECB.

HAVEN FIXED RATE UPDATE

Due to ongoing increases in the cost of funds we will be temporarily
withdrawing both new and existing business mortgage fixed rates.
Significant movements on financial markets have resulted in fixed rates
which would not deliver value to customers at this time.  This position
will, of course, remain under constant review.

PIPELINE IMPLICATIONS

New business loan offers will be honoured until close of business Monday
28th February 2011.  Any case not completed by Monday 28th will be subject
to an amended offer for acceptance of the applicable tiered variable rate.

For existing customers, all fixed rate offers will be honoured until close
of business Friday February 18th 2011.  In each case Haven must be in
receipt of a Fixed Rate Mortgage Conversion form by close of business
Friday 18th to secure the application of a fixed rate term.

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