Ugly if if turns out that way. Especially on top of skyrocketing energy and other costs in the UK.
Info comes via Bloomberg, its own research:
- Higher borrowing costs for lenders means the average monthly cost of a two-year fixed-rate mortgage will rise by 70% by March from January this year, Bloomberg Economics estimates. The cost of a two-year fixed-rate mortgage on an average-priced home will rise to about £1,325 ($1,468) at the end of the first quarter from about £779 last January, according to Niraj Shah, an economist at Bloomberg Economics
- A dramatic rise in swap rates after markets were roiled by Friday’s mini-budget suggested banks would have to substantially increase the cost of home loans in the coming weeks. Lenders have responded by pulling more than 1,620 mortgage products since Friday, the equivalent of 40% of the market, according to Moneyfacts Group Plc.
Bloomberg is gated, but an ungated copy is here for more.
