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Lenders hit back in fix furore

Lenders have hit back at claims that they aim to profit by withdrawing fixed-rate mortgages.

Broker Chase de Vere Mortgage Management and Moneyfacts both suggest that some lenders pulled their fixed-rate deals to stop borrowers getting cheap offers before February 1, when most lenders are expected to raise rates following the latest base rate increase.

But the majority of lenders insist they have been forced to withdraw many of their products due to rising swap rates and massive demand that exhausted funds.

Yorkshire Building Society corporate development director Andy Caton says: “Our new range of products is producing no extra profit compared with the previous range. The money markets are factoring in a further rise next month so most of our new range is between 0.3 per cent and 0.4 per cent higher than before.”

Britannia has pledged not to pull any fixed-rate products. Anyone applying for a Britannia fixed-rate mortgage before February 1 will not face a hike in rates although that pledge does not apply to its intermediary specialist lender Platform, which is reviewing its pricing.

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