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Ultra-cheap mortgage deals are fast disappearing amid fears of an imminent interest rate rise.
Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent.
The number of loans in that bracket has dropped by almost a third in a fortnight. Mortgage rates fell to a record low this summer as banks and building societies fought to attract customers.
But analysts believe the price war may be over. Bank of England governor Andrew Bailey cautioned last weekend that interest rates may have to rise to curb soaring prices.
Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent
Yesterday the Bank’s chief economist, Huw Pill, said that with inflation likely to hit 5 per cent early next year, the decision on whether to hike rates in November was very much ‘live’.
The City is betting on a rise as early as next month. The Bank of England base rate was cut to an all-time low of 0.1 per cent at the start of the pandemic in March
