#Mortgage rates in the United Kingdom have jumped to a 14-year high as the UK consumer price index increased by 10.1% in the year to September, with food, energy and transport costs reaching a 40-year high.
This situation represents a double-edged sword for #investors as lenders also suspended hundreds of mortgage products amid uncertainty over how to price their long-term loan portfolios. If you are a cash-buyer this poses less challenges but if you are looking to pick-up a mortgage, particularly in an SPV this will create a reduced number of options.
Of course, what is also the case is, as the UK does not readily offer long-term fixed rate #mortgages, nor are the 10-year options massively popular, soaring mortgage #rates wil hit consumers in the UK who have variable rate morgages or fixed rate terms that are coming to an end. This will inevitably lead to a UK market where home prices are depressed by a potential influx of properties into the market due to mortgages which becomes unaffordable.
#Investors interested in the UK market should be mindful of this factos as Britain enters a time of financial instability.
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