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Tracker and high LTV mortgages targeted as lenders pull more products

  • 20/03/2020
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Tracker and high LTV mortgages targeted as lenders pull more products
Lenders have continued to withdraw mortgage products in the wake of the lowered base rate and economic disruption caused by Covid-19.


According to Moneyfacts data seen by Mortgage Solutions, 11 lenders have pulled offerings from their range since 11 March.

Half of the 16 withdrawal updates were made since the Bank of England cut the base rate to a record low of 0.1 per cent yesterday. 

Products no longer on the market include Newcastle Building Society’s tracker range which it said had been pulled due to the tranches being filled.

A spokesperson for the society said it was reviewing the pricing of a new range of tracker mortgages. 

Newcastle BS follows the lead of Nationwide and The Mortgage Works (TMW) in withdrawing tracker ranges today.


High LTVs targeted

Mortgage offerings across higher loan to value (LTV) tiers have also been discontinued.  

Progressive Building Society has removed two 95 per cent LTV mortgages including its discounted variable rate product at 2.99 per cent and the professional equivalent for people in certain careers. 

Additionally, Foundation Home Loans removed all mortgage products of 80 per cent LTV while Kensington Mortgages temporarily removed its 85 buy-to-let and 95 per cent residential ranges. 

Craig McKinlay, new business director at Kensington Mortgages said this was done to protect its customers during this “unprecedented time” . 

He added: “We will continue to monitor the current environment and are in close contact with UK Finance to keep up to date with official guidance and industry best practice in these exceptional times.” 


Other removals 

West Brom Building Society pulled a number of products with LTVs higher than 60 per cent including shared ownership offerings at 90 and 95 per cent.  

Some of the products withdrawn appear to match shared ownership mortgages the society launched just two days ago, including the 95 per cent LTV shared ownership offering with a rate of 3.89 per cent.

Mortgage Solutions has contacted the society to confirm whether these are the same products. 

Darlington Building Society has also withdrawn a fixed rate mortgage of 3.49 per cent. 

Darren Ditchburn, chief customer officer at Darlington, said: “The society constantly reviews all of its mortgage and savings products to ensure they remain suitable based on market conditions.

“Given the current backdrop of unprecedented global market conditions including two emergency reductions in bank base rate we have decided to temporarily remove our 95 per cent LTV product from sale.”


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