A North East building society has pulled all of its mortgage deals after the UK economy was plunged into turmoil.
Newcastle Building Society confirmed that it has withdrawn its entire range of mortgages because of the “volatile” market conditions, amid a crisis sparked after Chancellor Kwasi Kwarteng announced a raft of tax cuts and increased borrowing in his mini-budget last week. The decision came as the Bank of England launched an emergency intervention on Wednesday to avert a “material risk to UK financial stability”, while homeowners and prospective buyers have been left worrying about a major hike in prices.
John McCabe, chief executive of the North East England Chamber of Commerce, warned that it was “looking increasingly difficult” for financial markets to regain trust in the UK economy. A record number of mortgage deals were pulled overnight, with Moneyfacts.co.uk reporting that 935 fewer packages were available nationwide on Wednesday compared to the day before.
