Capital Fortune Independent Mortgage Advisers has hit out at top lenders for withdrawing their current fixed rate products despite the recent interest rate hold.
It says existing deals are to be replaced with higher rates across the board, significantly increasing the cost of borrowing and despite the Bank of England agreeing to put rates on hold earlier last week.
Top lenders including Northern Rock, Nationwide, Portman, Halifax, Bank of Scotland, Chelsea, Coventry, UCB and Abbey have announced rate withdrawals and introduced almost identical products with an increased premium of between 0.1% and 0.3% across the board.
Rob Killeen, founder of Capital Fortune, has made a formal request to the Financial Services Authority to investigate the recent hikes.
He says “There appears no reason for these further moves and customers across the land will now be subject to even higher borrowing costs.
“It is the duty of all financial organisations to treat customers fairly and the FSA should investigate why all the big players have chosen to increase their rates in tandem and almost on the same day. It is unacceptable.”
He says the free market is designed to bring about competition and
such a universal change across the market could give consumers the
impression that lenders are deliberately price fixing.
Capital Fortune has informed all its current customers of the product
withdrawals and is negotiating with the lenders to show flexibility and extend their imminent deadlines.