In response to the 0.25 per cent Base Rate cut, Alliance & Leicester and Northern Rock have issued withdrawal warnings on some of their fixed rate and stepped flexible rate products.
Ron Stout, assistant director of PR at Northern Rock, admitted its product rates and offers may be withdrawn from the marketplace or altered in line with industry movements. He said: “Due to the rate cut we are letting the industry know that the products may be withdrawn.
“Although no decision has been made and no date set, it is standard procedure for Northern Rock to let the industry know that changes may be made to our products.”
Stout added: “We have advised brokers that our current fixed rate and stepped flexible rates could be withdrawn at very short notice.”
Harry Katz, principle of Norwest Consultants, was adamant these products would soon be unavailable and warned of further withdrawals from more lenders in the coming months.
“I can’t see interest rates staying where they are at the moment,” he said. “With rising oil prices, debt levels escalating and deficits climbing,
I can see the rate increasing soon, leading to a lot more market changes. The situation would become even more dire if unemployment levels were to rise.”
HOME/NEWS
