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Mortgage Rates in UK Climb Again, Putting Pressure on Housing Market

2023-06-12

Mortgage rates in the United Kingdom climbed again, as experts warned that growing borrowing costs will put pressure on the housing market.

According to Moneyfacts, the average rate on a two-year mortgage across all loan-to-value ratios jumped to 5.82%, up from 5.30% a month ago.

Last month's stubbornly high British inflation figures triggered a significant spike in market interest rates as investors hurried to price in further hikes in borrowing costs from the Bank of England in the coming months.

Mortgage lenders' interest rates have risen in response. HSBC temporarily withdrawn mortgage products for customers applying through brokers.

"To help ensure that new customers get the best possible service, we occasionally need to limit the amount of new business we can take each day via broker services," an HSBC spokesperson said.

HSBC stated that its mortgage products and interest rates would continue to be available to existing customers.