Santander removes mortgage deals as rates climb.

Santander, the parent company of Abbey National, has removed practically all of its mortgage products in the United Kingdom as it reassesses the market ahead of further interest rate hikes by the Bank of England.

The Spanish bank that purchased Abbey in 2004 announced today that it will discontinue all new business rates at 7.30 p.m., with a fresh range launching on Wednesday.

"Due to current market conditions," a Santander spokeswoman stated, "we're temporarily withdrawing all our new business residential and Buy to Let fixed and tracker rates at 7.30pm on Monday June 12."

"Our product transfer line will remain available." On Wednesday, June 14, we will introduce our whole new business line.

HSBC took a similar step last Thursday, as high street bankers continue to reassess a fast changing industry.

This comes just as the BoE is expected to raise interest rates to 5.5% by the end of the year in order to combat stubborn inflation.

According to BoE official Jonathan Haskel, a member of the Monetary Policy Committee, future rises cannot be excluded excluded because prices continue to rise faster than the BoE's 2% goal.

"We are closely monitoring indicators of inflation momentum and persistence," he wrote in the Scotsman.

"In my opinion, it is critical that we continue to lean against the risks of inflation momentum, and thus that further interest rate increases cannot be ruled out."

Mortgage expenses in London may rise by up to £7,300, according to the Centre for Economics and Business Research, while 3.5 million borrowers throughout the UK face increased payments.

According to the CEBR, homeowners would have to pay over £9 billion more in interest during 2023 and 2024 as they are compelled to refinance at rates that are double what they are used to.

(Sources: investing.com, proactiveinvestors.co.uk)