UK homeowners brace for more mortgage pain as borrowing costs shoot up | CNN Business

  • 📰 cnni
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 59%

United States News News

United States United States Latest News,United States United States Headlines

Existing and aspiring UK homeowners are bracing for a fresh wave of misery as a rise in benchmark borrowing costs threatens to push up monthly mortgage payments.

The yield on the country’s two-year government bonds — which is used to set interest rates on mortgages — jumped to 4.87% on Tuesday. That is the highest level since the 2008 financial crisis and above the peak hit last fall when the UK government bond, or gilt, market was thrown into turmoil by the prospect of unfunded tax cuts and higher borrowing planned by then-Prime Minister Liz Truss.

With 800,000 fixed-rate mortgages due to expire in the latter half of this year, according to UK Finance, an association of banks and financial service providers, borrowers are bracing for another nasty shock to their monthly outgoings when they refinance. Major lender HSBC\n \n told CNN that it had temporarily withdrawn some of its mortgage products last week, and that it would hike rates on some of its mortgages from Thursday.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 326. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Washington Post publisher Fred Ryan steps down | CNN BusinessFred Ryan, the publisher and chief executive of The Washington Post, announced on Monday that he will step down from the position after nearly a decade at the helm of the newspaper.
Source: CNN - 🏆 4. / 95 Read more »

JPMorgan reaches $290 million settlement with Jeffrey Epstein victims | CNN BusinessJPMorgan Chase has agreed to pay $290 million to settle a class-action lawsuit from Jeffrey Epstein’s sexual abuse victims, according to David Boies, one of the victims’ attorneys.
Source: cnnbrk - 🏆 393. / 55 Read more »