Going, going...gone

Kevin Mountford, head of banking at moneysupermarket.com, comments: "We knew this was coming but this is unprecedented territory - for over half of all fixed rate bonds to just disappear is unheard of and will leave savers wondering where to turn.

It's hugely disappointing to see providers using the cut in base rate as a rather sorry excuse - these types of accounts are not generally affected by the base rate, they're priced using future market predictions of what's going to happen in the market. The deal is you give your money to the banks for a fixed length of time, and in return they reward you with a good rate. But these moves represent a blatant manipulation of the latest base rate change.

The best fixed rates now available are from overseas providers with little more than 6.5 per cent from the leading UK brand. I'm surprised no one seems to have twigged that £4.2 billion will soon be swishing around once Icesave customers get their compensation, so this could prove to be a knee-jerk and rather short-sighted reaction by the banks."

Louise Cuming, head of mortgages at moneysupermarket.com, comments: "As expected, none of the shouts of celebration surrounding lower costs for existing borrowers have been heard for those borrowers looking for new deals. The last thing lenders want to find themselves offering at the moment is a competitive mortgage deal to new borrowers - as they will be swamped with applicants, and most don't actually want to lend right now.

"As a result, lenders have stampeded away from new borrowers, with an unprecedented 23 providers withdrawing their trackers, undoubtedly to be replaced with higher priced alternatives.

"The mortgage market is under immense pressure to support existing borrowers. Yesterday's decision went some way towards that, although this is dependent on lenders' co-operation when it comes to passing on the rate cut to those on trackers and SVR deals which is beginning to happen today. But if the housing market is to recover long-term, lenders also need to coax new borrowers back in and to support existing customers coming to the end of their fixed or discounted deal.

As new tracker mortgages are thin on the ground, there are more and more borrowers reaching the end of their deal who previously would have remortgaged, but are now being forced onto their lender's SVR as they can't get a more competitive deal elsewhere."