Big British banks pull mortgages: Pound tanks further while dollar soars – Analytics & Forecasts – 28 September 2022

As this week began, the value of the British pound sank to a record low against the US dollar as investors rushed to sell the currency and government bonds in a show of skepticism about the economic plans of new Prime Minister Liz Truss, but since then there have been more signs of decline. trust has appeared.

Yesterday, 10 major UK retail banks pulled a large number of mortgage products from the market and significantly reworked the terms available on some of the mortgage products that remain on the market, in order to manage the potential risk if interest rates rise until the expected between 5 and 6% in January.

If this interest rate level is reached, personal and business debt payments would increase substantially, as the interest rate is currently around 2.6%.

That, combined with a free fence and inflation headed for 18% in January, according to Citigroup analysts last month, is a combination of equations that do not allow for a healthy borrowing environment…Read more : blog FXOpen

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