Cheltenham & Gloucester withdrew its entire mortgage range yesterday, and warned that when it reintroduces its home loan product range the loans will be more expensive.

Cheltenham & Gloucester – one of the UK’s biggest mortgage lenders – gave very little notice of its intentions. It told The Guardian yesterday that “From close of business today, Monday May 19, we will be withdrawing and replacing our entire range of mortgage products.”

Furthermore, when C&G; reopens its mortgage business, the range will not look the same. It said that: “Most rates will increase by 0.25 per cent following last week’s rise in the cost of funds.”

There were signs that Cheltenham & Gloucester, like many of its peers, was struggling last week when it withdrew a 5.89 per cent buy to let mortgage, to replace it with a 6.29 per cent five year fixed rate.

This comes as yet more bad news for homeowners, who are finding it increasingly difficult to find competitive mortgage deals, and first time buyers are struggling to find one at all as lenders hike their rates and demand large deposits.

However, it is not all doom and gloom, as online bank first direct also chose yesterday to reintroduce its mortgage range to the market, having withdrawn it on April 1 after receiving five times its usual number of applications as homeowners scrambled for its competitive deals.

© Fair Investment Company Ltd