UK mortgage rates set to rise as bond sell-off drives up borrowing costs – business live
Rolling coverage of the latet economic and financial news The UK government bond market is open! And there is reassuring news for borrowers, and our political leaders. UK bond prices are strengthening, a little, which is pushing down the yield (or rate of return) on these gilts. Continue reading...
UK bond market shows signs of strengthening, with 10-year bond yields dropping over 4 basis points to 5.195%, and 30-year bond yields declining similarly to 5.831%. This dip in bond yields is linked to a decrease in oil prices, which has eased market concerns. Despite the recent market fluctuations, mortgage borrowers should be cautious, as rising UK swap rates could lead to increased borrowing costs.
Investment director Russ Mould predicts that higher interest rates on fixed-term mortgages are likely due to the increased swap rates. However, experts note that the recent changes in swap rates are less severe compared to previous spikes, such as those seen during the Iran war outbreak.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
