Factors in the UK mortgage market affect interest rates, and we could see them increase.
Over the last few days, we have observed the following changes:
- The best five-year fixed-rate mortgage has been withdrawn from the market, indicating a potential end to the recent trend of falling rates.
- Barclays has announced an increase in one of its mortgage products, effective today.
- Co-op Bank has temporarily withdrawn some of its fixed-term mortgage products.
- Coventry Building Society is also set to raise its rates again.
Factors Influencing Changes in the Market
Several factors are influencing changes in the market:
- Concerns about Rachel Reeves’ upcoming budget are causing market nervousness.
- Recent swap rate rises have been caused by global events, geopolitical tensions, and mixed signals from the Bank of England’s Monetary Policy Committee (MPC) about future interest rate changes. This has unsettled the markets, and the trend of decreasing rates may soon end.
The direction of rates may become clearer once the budget has been announced and following the next MPC meeting, which is due on 7 November.
