UK mortgage rates grew by 6.66%, the highest since 2008

Posted on July 17, 2023   |  

The average 2-year fixed residential mortgage rate grew by 6.66%, exceeding the 6.65% of October 20 and the highest since August 2008.

In early 2023, Britain's housing market activity gave a comeback from the disruption caused by the unfunded tax-cutting plans but homeowners and buyers faced renewed mortgage discomfort in recent months.

Fixed mortgage deal rates grew more rapidly than expected as consumer price inflation increased bond yields.

Swap rates, a critical measure lenders use to decide the cost of mortgage borrowing also jumped by 0.89% points in June.