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 could see their last week payments increase, as profit margins are squeezed by ongoing global uncertainty. The slowing Chinese economy, Brexit and US President Donald Trump's policies are among the wider fears spooking investors. Meanwhile, the Financial Conduct Authority recently said it was considering relaxing its rules to allow people stuck in poor mortgage deals to find better ones.