UK Mortgage Borrowers Face a Perfect Storm of Higher Rates and Inflation The turmoil in global bond markets has sent shockwaves through the UK economy, leaving homeowners bracing for a significant increase in mortgage rates.
The five year swap rate, which lenders use to price mortgages, rose to a three year high of 4. 52% this week.
This development is particularly concerning given already heightened inflation expectations and the recent surge in oil prices. The current economic situation poses a perfect storm for UK mortgage borrowers.