This week has brought concerning developments for both prospective and current homeowners in the UK. Major lenders including Halifax, NatWest, Barclays and HSBC have all increased their mortgage rates.
Why Are Rates Rising?
These rate hikes are a direct response to global economic shifts. High US inflation figures and concerns around UK inflation has created a significant uptick in swap rates – the interest banks charge to lend to one another.
What Happens Next?
The landscape is complex and somewhat precarious. Economists are divided: some predict imminent interest rate cuts to bolster the UK’s struggling economy, while others suggest a more guarded approach, with potential delays in rate cuts until later in the year.
About The Author: Sunny Budhdeo
With a career that spans over 20 years, Sunny initiated his journey in the mortgage industry as an adviser at the prestigious estate agency Barnard Marcus. He quickly gained recognition for his expertise, particularly in specialist finance, focusing on complex buy-to-let loans and bridging finance. As the Co-Founder of Unique Property Finance, Sunny has become a linchpin in the industry, adept at solving intricate property finance issues and fostering strong relationships with lenders.
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