Mortgage lenders Virgin Money and Skipton for intermediaries have pulled new mortgage deals from their lending portfolios as the financial market goes into turmoil.
Well known mortgage lenders Virgin Money and Skipton have announced that they are temporarily pulling their new mortgage deals and products, until they can get a clearer image and a better idea of what is happening with the market as inflation surges and the pound falls to its lowest value since 1971. This dramatic shift in the value of the pound meant that lenders are struggling to accurately anticipate and value the mortgage products they offer.
Both banks sent out emails to registered mortgage brokers last night to make the announcement.
Virgin Money specifically said:
“Following last week’s [Bank of England base rate hike to 2.25%] and the government’s subsequent mini-budget, we continue to see the market response unfold. Given market conditions, we have temporarily withdrawn Virgin Money mortgage products for new customers.”
Skipton for intermediaries also added:
“In response, we will be temporarily withdrawing our new business product range with immediate effect. We haven’t taken this decision lightly but have done so in order to avoid further disruption for you and your clients.”
Despite pulling new mortgage deals, Virgin Money have said that they will continue to offer existing clients mortgages:
“Existing applications already submitted will be processed as normal and we’ll continue to offer our product transfer range for existing customers. We expect to launch a new product range later this week.”
These actions taken by Virgin and Skipton aren’t the only drastic changes that lenders have made, only this week Halifax announced that they would be withdrawing all of their fee paying products temporarily. These products are often have more appealing lower rates and benefits but it seems that the lenders can no longer afford to offer these products until they know how to accurately price them.
So what does this mean for mortgage customers? It means that rates are only going to go up and more lenders will be pulling products. If you are currently on a product that is due for renewal in the next 12 months, you could find yourself falling onto an expensive high interest mortgage when your product ends. So, now is the time to speak to an advisor and remortgage your property to save you from rate increases. Call our team today to speak to a professional and get your new mortgage deal sorted before products disappear and rates go up.