Analysts expect mortgage rates to soar and housing prices to plummet in the U.K., as the effect of higher interest rates ripples through the British housing market.
The U.K.'s biggest bank temporarily withdrew mortgage deals via broker services on Thursday, CNBC understands.
"Persistently high inflation and the recent spike in lending rates will trigger a correction in the UK housing market," Moody's Investor Service said in a report.LONDON – The U.K.'s biggest bank temporarily withdrew mortgage deals via broker services on Thursday, as the effect of higher interest rates ripples through the British housing market.
The banking group said the protocol was in order to ensure it meets "customer service commitments" and stressed that it remains open to new mortgage business.The HSBC decision comes as analysts expect mortgage rates to soar and housing prices to plummet in response to the increased base rate. "Those coming to the end of a 2-year fix will see a particularly large increase in the cost of their mortgage. While those refinancing a 5-year fix this month may see their mortgage rate jump from 2.1% to 4.9%, those on a 2-year fix will see an increase from 1.4% to 5.2%," Capital Economics said in a note published Thursday.
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