Bank of Ireland UK pulls mortgage deals amid turmoil

Bank of Ireland UK is among lenders to temporarily withdraw mortgage products in the wake of financial market turmoil.

The bank said it had withdrawn all residential and buy-to-let rates on Monday and will launch new ranges as soon as possible.

The price of UK government borrowing has increased since Friday's budget which has an impact on lenders.

Borrowers have been urged to "act fast" to secure new deals.

Virgin Money and Skipton Building Society halted mortgage offers for new customers, but said submitted applications would still be processed.

Halifax said it would stop mortgages with product fees.

Danske Bank, one of the biggest lenders in Northern Ireland, said: "We are monitoring the competitive landscape closely to ensure our mortgage product offering is in line with the wider market."

'Rates could more than double'

The Bank of England said on Monday it would "not hesitate" to hike interest rates after the pound hit record lows.

The bank's base rate influences borrowing costs across the economy for things like mortgages and personal loans.

It said it would make a full assessment as to whether it should change interest rates at its next meeting on 3 November, following speculation it might have intervened earlier.

• Bank will not hesitate to raise interest rates

• Why has the pound tumbled?

Following Monday's volatility, financial markets updated predictions and said interest rates could now more than double by next spring to 5.8%, from their current level of 2.25%, to curb inflation.

Experts said a rise in the cost of long-term borrowing meant the current cost to mortgage lenders of offering new deals was now more expensive.

'It's unlikely to get better'

Owen Peden, managing director at PropertyPal Mortgages in Northern Ireland said people "were concerned" but not to panic.

"We need to educate people to get on the ball and talk to a mortgage broker," he said.

"If your fixed rate is coming to an end in six months, act quick to secure the best rate.

"Prolonging it doesn't help. It's unlikely it's going to get better. I don't have a crystal ball but it looks like rates will get higher."

The Bank of England has already lifted interest rates seven times in a row since December to the highest level in 14 years.

If rates continue to increase as forecasted the average household in NI could see an increase of around £200 per month to their mortgage payments, according to PropertyPal.