"Nationwide Building Society and HSBC UK have indicated that they will be pushing up some of their mortgage rates from Friday, including for some first-time buyers, home movers and people switching and remortgaging. Coventry Building Society is also set to increase its mortgage rates on Monday."
"When setting mortgage rates, lenders are heavily influenced by a financial market measure called swap rates which reflect the market's view of which direction the Bank of England's interest rates will go. The average two-year fixed mortgage rate is now 4.84 per cent according to Moneyfacts, while the average five-year fixed rate is 4.96 per cent."
"Experts have raised concerns that inflation could rise as a result of the ongoing war, putting pressure on the Bank of England to hold off on further interest rate cuts."
UK mortgage lenders including Nationwide Building Society, HSBC UK, and Coventry Building Society are increasing interest rates starting Friday and Monday respectively. The increases affect first-time buyers, home movers, and those remortgaging. Middle East conflict is driving up oil and gas prices, raising inflation concerns that may prevent the Bank of England from cutting rates further. Lenders base mortgage rates on swap rates, which reflect market expectations of Bank of England interest rate movements. Current average fixed mortgage rates stand at 4.84 percent for two-year terms and 4.96 percent for five-year terms.
#uk-mortgage-rates #middle-east-conflict-economic-impact #inflation-concerns #bank-of-england-interest-rates #swap-rates
Read at www.independent.co.uk
Unable to calculate read time
Collection
[
|
...
]