New visitors to First Direct's mortgage pages can no longer apply for loans
Another day, another piece of bad news for borrowers. This time it's First Direct pulling its whole mortgage range for people who aren't already customers with the bank. In recent days we have also seen lenders hike rates, restrict lending criteria and push up deposits.
Almost as alarming as the changes are the speed with which they are being made. First Direct announced its withdrawal from the market early yesterday afternoon, and had taken its deals off the shelf by 5pm. Nationwide gave new borrowers less than a day's notice when it increased its rates.
All of which puts potential buyers and remortgagors in a tricky position. Taking out a big loan is not something to do without careful thought and a good deal of shopping around. But if stalling even for a matter of hours means maybe missing out on the most competitive deals, a delay could prove pretty costly.
It's not the end of the world for potential First Direct customers, as its parent company HSBC is now offering a two-year fixed-rate deal with only a slightly higher rate. But not all lenders can come up with an alternative for disappointed customers.
So if you're a remortgagor about to come to the end of a special deal, or one of the hardy few buyers still in the market, how are you approaching the rapidly changing mortgage market? Are you looking to grab a good deal while you can, or planning to sit and wait to see what happens next?
