In Britain, home loan interest rates kept rising, reaching their highest point in 14 years.
Additionally, the average interest rate on two-year mortgages increased to 6.07 percent, the highest level since November 2008, according to Money Facts Group, as reported by the Bloomberg news agency. The 5-year mortgage average interest rate was 6%, which was the highest level since February 2010.
On September 23, British Chancellor of the Exchequer Kwasi Quarting presented a “mini-budget” that included significant tax cuts, which completely disrupted the country’s financial markets.
The government announced a reduction of tax benefits for the wealthy on Monday, which prompted uproar, particularly within the ruling Conservative Party. This caused an increase in interest rate swaps, which lenders use to price mortgage products.
The largest mortgage lender in the country, Lloyd’s Banking Group, decided to halt some of its offers at the same time, and Virgin Money UK temporarily stopped lending money for real estate to new customers. British microfinance organisations like Kensington, Accord Motors, and Hedge also announced the withdrawal of financing offers.
According to a report from the British “Resolution Foundation” research institute, the new budget project unveiled by British Chancellor of the Exchequer Kwasi Quarting damaged Liz Truss’s government’s trust in the financial markets and caused those markets to plunge sharply. The cost of the pound has led to a rise in family poverty in Britain.
UK mortgage interest rates have increased to their highest level since 2008
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