Dimora Mortgages director, Jamie Lennox said: “It's certainly starting to feel eerily similar to what followed post the 'mini' Budget last year.
“The tidal wave is certainly building and it won't be long until we are awash with most lenders either increasing rates, reducing options available or temporarily pausing lending off the back of the economic outlook.”
Gary Bush, a financial adviser at MortgageShop.com added: “This is the same situation that occurred last October when a large number of lenders literally left the market, causing panic among consumers.”
In Bush’s view, action is required from the Financial Conduct Authority in order to stem any panic.
He said while lenders’ pointed to the “mini” Budget as the reason for the mass removal of products last year, he would be interested to hear how they think that the current state of play really justifies the current response.
“The regulator should have criteria among its enforcement processes that deal with regulated entities working towards creating market chaos. At times like this, we need grown-up thinking from lending institutions, not have them running for the hills,” Bush said.
Likewise, Simon Allen, director of Searchlight Finance said the increase in product rates is not the issue, instead it is the lack of notice from lenders.
Earlier this year, mortgage brokers called for at least a 24-hour notice period on product changes after TSB gave intermediaries just 25 minutes warning of a rate hike.
“As a specialist broker in the buy-to-let market, I've been anticipating rate increases over the past week and if I can work it out, why can't lenders give brokers sufficient notice?,” Allen said.
“It creates stress for a client rushing to get information to process the application and can cause havoc to a broker's workload by readjusting their priorities to ensure rates are secured for their landlord clients.
“Some lenders allow the interest rate to be secured if the decision in principle is issued by a certain time. This gives one or two days to submit the rest of the information. More should offer this,” he added.
Hannah Bashford, director of Model Financial Solutions added that the situation is "incredibly frustrating".
"There are lots of lenders increasing rates with very little notice and it is stressful for us as brokers and clients themselves who have to make rush decisions or lose out on the rates.
"This simply doesn't treat customers fairly as it is impossible to process a case compliantly in this kind of timescale," Bashford said.
