- Mortgage lenders are increasing rates, presenting "unwelcome news" for borrowers seeking new deals.
- The rise in rates is primarily attributed to the escalated conflict in Iran, which has reignited inflation fears.
- Disruption in energy markets, a consequence of the conflict, is expected to lead to higher prices.
- Expectations for the Bank of England to implement near-term interest rate cuts have been pushed further into the future.
- This shift in market sentiment has directly impacted the swap markets, which lenders utilise to fund fixed-rate mortgages.
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