UK Mortgage Rates Rise, Putting Pressure on Housing Marketadmin
Mortgage rates in the UK have increased, which could put pressure on the housing market.
The average rate on a two-year mortgage deal rose to 5.82% from 5.30% a month ago. The rise in rates comes after high inflation data led to expectations of more interest rate hikes from the Bank of England.
HSBC temporarily withdrew mortgage products for new customers applying via brokers, while Nationwide Building Society also raised its mortgage rates. Experts predict a 10% drop in house prices due to the increased borrowing costs.
Moody’s has also forecasted a 10% drop in house prices. In March, UK house prices were 3% lower than their peak in November 2022.