Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Mortgage Rates Expected to Rise Ahead of Bank of England Decision
Mortgage rates are set to increase this week as swap rates reach a three-year high. The rise comes ahead of the latest Bank of England interest rate decision.
Swap rates, which lenders use to determine mortgage pricing, have climbed due to volatility in international bond markets. This has led banks and building societies, including Coventry Building Society, to raise their rates.
Last month, the Bank of England held interest rates at 3.75%. However, three members of the nine-strong Monetary Policy Committee (MPC) voted for an increase. Huw Pill, the Bank’s Chief Economist and an MPC member, has expressed support for raising the Bank Rate, according to The Guardian.
The MPC is scheduled to meet again next week to decide on interest rates. The average two-year fixed rate mortgage is currently 5.59%, while a five-year fixed deal stands at 5.63%, according to Moneyfacts.
These developments are significant for UK letting agents and inventory clerks, as changes in mortgage rates can impact landlord costs and the wider property market.
Source: The Negotiator