United Kingdom

Banks pull half of their mortgages in just over three weeks

Banks have cut half of their mortgage products in just over three weeks in the biggest cull since the last financial crisis.

There were 5,239 products available before the Bank of England made this year's first base rate cut from 0.75 per cent to 0.25 per cent on March 11. Now there are 2,768, according to Moneyfacts. 

Lenders have axed 424 deals in the last five days alone.

Mortgages cull: There were 5,239 products available before the Bank of England made this year's first base rate cut from 0.75 per cent to 0.25 per cent on March 11. Now there are 2,768

The figures cover residential mortgages and don't include buy-to-let or specialist products.

It is hoped that banks will bring products back to the market over the coming weeks once the dust settles on the coronavirus crisis.

Eleanor Williams, financial expert at Moneyfacts, says: 'The recent withdrawal of many higher loan-to-value mortgages and home purchase products is expected to be a temporary measure while lenders reassess risk, their internal operational capacity, and work out what their range of mortgages may look like moving forward.

'It is likely that lenders may be assessing how they intend to approach widespread extenuating circumstances, such as gaps developing in household incomes.'

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