HSBC has temporarily withdrawn mortgage deals for new borrowers due to a surge in demand ahead of expected rate rises.
The bank said on Thursday it would remove all its “new business” residential and buy-to-let products, with deals becoming available again on Monday.
HSBC announced it was withdrawing new deals “to ensure that we can stay within our operational capacity and meet our customer service commitments”, making it likely that the bank will raise rates on Monday.
Products and rates for existing customers were still available.
It is the first time that HSBC, which accounts for almost a quarter of the home loans market, has withdrawn from the mortgage market since the aftermath of September’s disastrous mini-budget under Liz Truss’s government.
Mortgage rates have been rising since data last month showed that inflation was not coming down as quickly as expected.
There have been predictions that the Bank of England will raise rates higher than previously forecast from their current 4.5%, set last month, to up to 5.5%.
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Source: www.theguardian.com
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