Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Iranian Intelligence Minister Esmaeil Khatib: The assassinations were scheduled to be carried out on Saturday with the aim of stirring up national and sectarian strifes in the country
Iranian Intelligence Minister Esmaeil Khatib: A series of attempts to assassinate a number of Sunni scholars, judges, and IRGC officers was thwarted
Twin shootings in Rotterdam led to multiple deaths: Dutch police
Dutch Police: Rotterdam shooter arrested
US imposes fresh Sudan-related sanctions: Treasury Department
Dutch Police: Two were wounded in a shooting in the city of Rotterdam, southwest of the country, and the attacker is still at large
Russia halts nuclear fuel exports to US over lack of insurance: Rosatom
Russian Defense Ministry: Ukrainian drone destroyed over Russia's Bryansk region.
Nagorno-Karabakh announces cessation of existence of unrecognized republic.
Russian Defense Ministry: Air defense forces intercepted Ukrainian aircraft-type UAV over Bryansk region.

UK mortgage crisis continues as Santander pulls new borrower deals

  • By Al Mayadeen English
  • Source: News Websites
  • 12 Jun 2023 17:46
  • x

The turbulent home credit market has shown no signs of getting better in the UK.

  •  A branch of Santander bank, in New York on December 17, 2013. (AP)
    A branch of Santander Bank in New York on December 17, 2013 (AP)

As the volatility in the house loan market shows no signs of diminishing, Santander is the latest large bank to say it is temporarily withdrawing its mortgage packages for new consumers off the market.

Santander warned mortgage brokers that it will cease accepting new applications for its "new business" residential and buy-to-let fixed and tracker rates from 7.30 pm on Monday, with agreements not being available again until Wednesday, June 14.

The construction of new homes is being cut back in the UK amid indications that buyers fear a spike in mortgage rates over the next few months. 

According to a construction report, residential building site work plunged to its lowest last month since 2009. However, commercial building and civil engineering sectors, surveyed monthly by S&P and the Chartered Institute of Procurement and Supply (CIPS), demonstrated expansion.

The change affects applications made through mortgage brokers and online, although Santander said new deals for current customers were still available, and those who applied before 7.30 p.m. would not be impacted.

Banks and building societies are continuing to withdraw house loans from their shelves, often with little warning, and boost the interest rates on existing fixed-rate plans. 

TSB, however, will decrease the cost of some of its new packages by up to 0.4 percentage points on Tuesday.

Read next: House prices fall similar to the UK's 2008 crisis

Related News

Mortgage rates in US hit highest in over 20 years: Report

Tory MPs warn mortgage crisis could cost them elections

HSBC said on Thursday it will remove all new business residential and buy-to-let products from 5 pm that day, with sales resuming on Monday.

Only 3 hours later, it announced an immediate removal of products "due to significant demand."

Some mortgage brokers claimed that they had been waiting in queue for more than an hour, unable to contact HSBC, before receiving the amended message.

According to a Santander spokesperson, the bank "continually reviews" its products in light of changing market conditions, adding, "As we prepare for a relaunch of a full range of mortgage products from Wednesday morning, we will not be accepting new applications via intermediary and online channels temporarily from this evening. Our product transfer range remains fully available and customers who have already applied will not be impacted.”

According to the financial data source Moneyfacts, the average rate on a new two-year fixed mortgage has risen to 5.86% on Monday, up from 5.26% at the start of May.

However, the number of residential mortgage offers offered has been increasing in recent days, reaching 4,952 on Monday, up from 4,597 last Wednesday.

Meanwhile, TSB said on Tuesday it will reduce rates on selected two- and five-year loans by up to 0.4 percentage points across its residential and buy-to-let portfolios. This may imply that it has priced its deals more than the market average.

Official interest rates have been raised 12 times in the past 18 months by the Bank of England as inflation continues to soar. 

A report by Resolution Foundation stated that around 1.6 million British households will face a £2,300 increase in mortgage payments after interest rates surged amid a current housing crisis.

  • mortgage rates
  • santander
  • UK
  • United Kingdom
  • mortgage default
  • mortgage

Most Read

Russia destroyed leopard tank in Ukraine with fully-German crew

Russia destroyed leopard tank in Ukraine with fully-German crew

  • Europe
  • 23 Sep 2023
Blinken’s ‘Variable Geometry’ for a New Cold War

Blinken’s ‘Variable Geometry’ for a New Cold War

  • Analysis
  • 24 Sep 2023
Zelensky joins Canadian Parliament’s ovation to WWII Nazi soldier

Zelensky joins Canadian Parliament’s ovation to WWII Nazi soldier

  • US & Canada
  • 25 Sep 2023
BBC from the front lines in Ukraine: It's bad, counteroffensive failed

BBC from the front lines in Ukraine: It's bad, counteroffensive failed

  • Europe
  • 28 Sep 2023

Coverage

All
Morocco & Libya Disasters

Read Next

All
BBC to restrict top hosts' social media usage
Europe

BBC to restrict hosts' social media for chiding anti-migration remarks

Germany, 'Israel'
Europe

Germany signs 'historic' deal to acquire Israeli-made Arrow 3 system

Secretary of State Antony Blinken speaks during a media briefing at the State Department, Tuesday, Aug. 15, 2023, in Washington. (AP)
Europe

'Never say never': Blinken on Biden-Putin meeting in the future

Plastic found in clouds may contaminate everything we consume
US & Canada

Microplastics in clouds cause 'plastic rainfall', infect everything

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS