Lender repricing of fixed rates continued right up to the start of the weekend.

Fears have grown not only of a longer than expected conflict but consequential inflation, too.

David Hollingsworth of L&C Mortgages says: “Lenders are more frequently withdrawing at very short notice and/or pulling deals without any immediate replacement.

“The spike in funding costs results from the market view that future interest rate movement has shifted from further cuts this year to more increases.

“The frequent rate changes are causing significant spikes in business volume for lenders. 

“That is almost inevitably going to put some strain on servicing, so borrowers may see the time to receive a mortgage offer edge out. 

“Lender rate hikes will often be provoked by a desire to manage volume but with so much volatility and the accelerated pace of rate changes, it’s increasingly difficult for lenders to make a judgment.”

Hollingsworth says he expects that mortgage borrowers will have to resign themselves to more rounds of repricing this coming week.

Example Rate moves:

Coventry BS gave notice on Friday of its withdrawal of rates for new customers on Sunday evening but unusually has indicated that no replacements will be announced until this coming week. 

West Bromwich BS on Friday afternoon announced fixed rate withdrawals at 5.00pm with no immediate replacements.

HSBC has announced that it will increase rates on Monday – today – its third change in as many weeks.

Co-operative Bank withdrew all products for new customers at close of play Friday with no immediate replacement.