Homeowners face paying more for their mortgages as specialist lenders are hit by higher funding costs due to investors’ fears about Brexit and the global economy. Fleet Mortgages, based in Hampshire, last week withdrew all of its products to new customers and said it was seeking funding. Secure Trust Bank, whose products span business and personal lending, is planning to pause residential mortgage lending because profit margins have been squeezed. Other specialist lenders are also wrestling with higher funding costs in wholesale markets, putting pressure on profit margins. That could depress the number of mortgage deals on offer and potentially lead to mergers similar to Aldermore’s takeover by South Africa’s First Rand last year or the private equity acquisition of Shawbrook Bank in 2017. A
UK homeowners who have mortgages with specialist lenders often see their monthly payments increase , as profit margins are squeezed by ongoing global uncertainty . The slowing Chinese economy , recession and US recession Donald Trump 's policies are among the wider fears spooking investors . Meanwhile , the mortgage Conduct Authority recently announced it was considering changing its rules to allow investors stuck in poor mortgage deals to find better ones .