UK swap rates, the benchmark lenders use to set mortgage rates, have climbed to their highest level in three years, reflecting a sharp rise in oil prices that has stoked fears of higher inflation. The surge comes amid a global bond market sell‑off that has pressured yields and pushed the Bank of England to consider further interest‑rate hikes. Homeowners now face the prospect of higher monthly payments as lenders adjust their pricing models to the new, more volatile backdrop. The combination of energy‑price‑driven inflation and tightening monetary policy is reshaping the UK housing market, prompting lenders to re‑evaluate risk and adjust rates accordingly.
Swap rates rise to three-year high as increase in oil prices leads to fears of higher inflationBusiness live – latest updatesHomeowners in the UK are braced for a jump in mortgage rates, driven by higher inflation and interest rate increase expectations amid turmoil in the global bond markets.UK swap rates, which lenders use to price mortgages, have risen to a three-year high, as this week’s global bond market sell-off ripples through the economy. Continue reading...
