UK lenders return to market with mortgage rates near 6%
Leading British banks are re-entering the mortgage market with interest rates of almost 6 per cent, after halting new fixed-rate home loans last week following turbulence in the UK government bond market.
Barclays, Skipton Building Society, NatWest, Virgin Money and Nationwide are among the lenders to increase rates on new mortgage deals in the wake of chancellor Kwasi Kwarteng’s “mini” Budget just over a week ago, which sent gilt yields soaring.
The average rate on two-year fixed deals jumped to 5.75 per cent on Monday, up from 4.74 per cent on the day of Kwarteng’s announcement on September 23, according to data provider Moneyfacts.
This story originally appeared on: Financial Times - Author:James Pickford
