Mortgage withdrawals 'to have knock-on effect'

The withdrawal of mortgage products to new customers by some lenders recently will have a knock-on effect on buyers generally, it has been predicted.

Rebecca Atkinson, news editor of personal finance magazine moneywise.co.uk, said the situation in which lenders like First Direct and the Co-operative Bank has withdrawn products was going to hit everyone, adding: "That[the withdrawal of products] will affect you whether you have half a million quid to put down or if you are a first-time buyer."

She added that the current situation had gone beyond just affecting subprime borrowers and was now causing everybody problems because rates and deposits were higher than before.

A situation of this nature may persuade many that self build is a better option.

Earlier today First Direct said it was going to start issuing mortgages to new borrowers again "in the coming weeks", but did not specify exactly when.


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