UK real estate market suffers from rising interest rates| MENAFN.COM

Tuesday, 06 December 2022 10:45 GMT

UK real estate market suffers from rising interest rates


(MENAFN) According to a Tuesday Bloomberg article, home sales in the United Kingdom have been steadily declining as a result of the banks intentionally removing mortgage programs in reaction to rising interest rates.

The agency highlighted statistics gathered by Moneyfacts Group that showed there were 9 percent fewer home mortgage options available on the United Kingdom market between Friday am and Tuesday morning, down to 3,596 from 3,961.

The end of affordable mortgages is near, according to the nation’s biggest financial companies including Santander, HSBC, and Nationwide as well as smaller lenders, as the financial markets are unmistakably signaling that the Bank of England may need to boost interest rates as high as 6 percent.

The largest mortgage provider in the United Kingdom, Lloyds, ceased some offers on Monday, and Virgin Money United Kingdom temporarily stopped giving out house loans to new clients. Smaller lenders including Kensington, Accord Mortgages, and Hodge announced on Tuesday that they were pulling products in a similar fashion.

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