Banks withdraw 1% mortgage deals

Analysts at Moneyfacts have found that sub-1% fixed rate mortgages have disappeared from the market since last week's rate rise. In comparison, last October when there were 130 such deals on the market. The current cheapest two-year fixed rate now costs 1.39%, meaning a borrower will pay £800 more in interest per year on a £200,000 mortgage compared with a 0.99% rate. Katie Brain at Defaqto, said: "I can't imagine lenders will be introducing deals with rates that low again for a good while. If borrowers aren't at the best rate they can possibly get, they need to consider why. Because rates are only going to go up from here." The Daily Telegraph