This includes its residential purchase and remortgage, product transfer and additional borrowing options.
In a note sent to brokers just before midday, the lender said the “urgent” decision had been made to remove the long-term fixes from 2pm today.
Earlier this morning, TSB announced it was putting up two and five-year fixed rates by as much as 0.8 per cent.
TSB is the latest lender to pull its rates at a short notice, with the majority of changes occurring across the specialist and buy-to-let market. This has happened because of a spike in swap rates over the past couple of weeks.
Products will start to return
Vikki Jefferies, proposition director at Primis, said: “Recent headlines stating that lenders are withdrawing products from the market have given rise to some consumer concerns about future product availability and affordability. While it is true that some products have been pulled in response to higher swap rates and predictions that the Bank of England base rate will increase further, market sentiment points to this being a short-term change.
“What we expect to see is products coming back to the market as lenders adapt to higher swap rates, albeit with slightly raised interest rates.”
She said while lenders will be working to bring products back as soon as possible, recent events proved how quickly the market could evolve and highlighted the importance of seeking advice.
Santander rate increase
Santander has announced that it will be increasing select rates by between 0.05 per cent and 0.43 per cent.
This will apply to all of its new business fixed residential rates from 5 June. Across its new business buy-to-let fixed rates, all pricing will increase by 0.25 per cent.
The lender will also withdraw its five-year fixed remortgage for residential borrowers which is available at 60 per cent loan to value (LTV) with a rate of 4.08 per cent and a £999 fee.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Swap rates haven’t settled as quickly as expected. While we have seen HSBC and other lenders increase recently, market conditions are now forcing other lenders to make changes.
“While rates are expected to fall, the short-term volatility will no doubt put pressure on households decision making and circumstances.”
Mendes said a remortgage was still a “great option” for people in the right circumstances who are coming to the end of a fixed deal.
