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Banks deduct half of their mortgages in just over three weeks

Banks deduct half of their mortgages in just over three weeks, with the largest clearance since the last financial crisis

Banks cut half of their mortgage products in just over three weeks during the biggest runoff since the last financial crisis.

There were 5,239 products available before the Bank of England first lowered the base rate from 11.75 percent to 0.25 percent on March 11 this year. Now there are 2,768, according to Moneyfacts.

Lenders have closed 424 deals in the past five days alone.

Mortgages are being discontinued: 5,239 products were available before the Bank of England lowered the base rate on March 11 from 0.75 percent to 0.25 percent this year. Now there are 2,768

Mortgages are being discontinued: 5,239 products were available before the Bank of England lowered the base rate on March 11 from 0.75 percent to 0.25 percent this year. Now there are 2,768

The figures refer to residential mortgages and exclude purchase or specialist products.

Hopefully, banks will bring products back to the market in the coming weeks once the dust settles on the coronavirus crisis.

Eleanor Williams, financial expert at Moneyfacts, says, “The recent withdrawal of much higher, higher value loans and home purchase products is expected to be a temporary measure as lenders reassess the risk, their internal operating capacity and determine their range of mortgages may seem to be improving.

“It is likely that lenders will assess how they plan to address widespread mitigating circumstances, such as gaps in family income.”

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