Many mortgage lenders have started to withdraw their fixed rate mortgage deals in preparation for the possible Bank of England interest rate rise in May.
The UK inflation rate rose to 3.1%, which is higher than many city analysts predicted. It is common practice for lenders to withdraw mortgage deals when interest rates are rising.
The withdrawal of many of the best fixed rate deals will hit the first time buyers the hardest, many of who rely on fixed rate deals to get them on the property ladder. With around 90% of all mortgages for first time buyers being fixed rate mortgages this could have a dramatic effect on the market.
It's still possible to fix your mortgage below the Bank of England base rate, but how long those fixed rates will be available is not clear, but with the replacement of such deals with less advantageous interest rates it is still thought that the fixed rate mortgage deals will still be popular with consumers in the UK.
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