More banks have withdrawn mortgage deals following First Direct's decision to suspend its entire range...

...First Direct is the first bank to withdraw its entire range to non-customers, although the Bath and Earl Shilton building societies took the same step last month...

Originally posted by pause4thought

To those unfamiliar with the UK market, First Direct, part of HSBC, is a major player.

This whole situation smacks of a cover-up. "Oh, we've just got too many applications too deal with at once..."

Sounds like "None of the banks want to lend to each other and we don't have enough capital to continue issuing mortgages ourselves".

The official line about too many applications has been churned out recently by too many lenders to sound credible. You can fool some of the people some of the time...

news.bbc.co.uk
(visit the link for the full news article)

[edit on 2/4/08 by pause4thought]