HSBC has withdrawn all residential, buy-to-let and business mortgage deals after being overwhelmed by a rush of customers seeking to lock-in deals before rates rise. The lender, which accounts for almost a quarter of the home loans market, said it would relaunch its products next week.
Recent rises in yields on government debt have prompted mortgage lenders to rapidly reprice their deals and withdraw some products altogether.
HSBC has increased rates on all deals available to existing customers while Nationwide and Lloyds were among other lenders to hike their mortgage rates on Thursday. The Bank rate currently stands at 4.5% but economists now expected it to peak at 5.5%.
Andrew Wishart at Capital Economics said “There is a growing risk that the pressure on household budgets from inflation and the large increase in payments for those coming to the end of a two-year fix will cause financial distress to occur earlier than in the past.”