The Alliance and Leicester has recently announced the withdrawal of one of its most popular mortgage products from the market, stating that it can no longer keep up with demand for the mortgage product. The two year fixed rate mortgage from the Alliance and Leicester has enjoyed huge popularity in the past, but officials from the bank have stated that demand is now outstripping the ability to supply, and with this in mind the lender has decided to take the deal off the market altogether for the foreseeable future.

One official from the Alliance and Leicester stated: “Over the past few days we have seen a high demand for our 4.99% two-year fixed-rate product and therefore we have taken the decision to remove it from the range.”

This is the latest move by a lender to take affordable mortgages off the market, with industry officials stating that the range of mortgage products available to consumers has plummeted over recent months as a result of the global credit crunch.

Many are concerned that the fall in mortgage products and affordability is going to see the continued decline of the housing market, with industry officials predicting that house prices in many parts of the UK will plummet over the next couple of years. One official said that house prices are bound to fall given the huge drop in affordable mortgage products over recent months. He said: “The cheap and readily available credit has gone so there’s only one place for house prices to go and that’s to fall quite dramatically.”

Research has shown that in the past month alone the range of mortgage products available from lenders has fallen significantly by around two thousand, and this is a trend that is set to continue.

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