UK mortgage rates spike to highest level since Truss tax plan spooked markets

By Associated Press

Jul 06, 2023 12:08 am

With the Bank of England raising interest rates to a 15-year high of 5 percent to battle high inflation, it's natural for lenders to increase the cost of borrowing to consumers and businesses. But inflation is proving more stubborn than expected, and the bank is expected to keep hiking rates, potentially to 6 percent, a level not seen since 2001.

That prospect is having a knock-on effect in the cost of mortgages. According to financial information company Moneyfacts, the average rate for a five-year fixed-rate mortgage in the UK hit 6.01 percent on Tuesday from 5.97 percent the previous day.

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