UK Mortgage Borrowers £500 Worse Off Than Before Reeves Budget
- Five-year mortgage rates reached highest since August
- Rising borrowing costs threaten to stall the housing recovery
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The cost of the UK’s most popular mortgages has risen to the highest level since August, risking a £500 ($609) annual hit for borrowers, as the turbulence that’s gripped the government debt market feeds through to housing.
Five-year fixed rate mortgages hit 5.3% Friday, the highest in five months, data compiled by Moneyfacts show. The jump in price, which is tied to gilt yields, will cost those who are remortgaging home loans this year an additional £500 on average, according to an estimate published by Bloomberg Economics.