UK 2-year Mortgage Rates Hit 15-year High as Households Face Cost of Living Crisis

According to Moneyfacts Group, the average interest rate on two-year fixed home loans in the UK rose to 6.66% on Tuesday, the highest level since August 2008, and the average five-year interest rate rose to 6.17%, gradually approaching the 14-year high set in October last year. point.
British households are facing huge cost pressures triggered by rising interest rates and the worst cost of living crisis in a generation.
Millions of homeowners have seen the value of their homes drop this year, with some analysts predicting double-digit declines.
At the same time, lenders have raised lending costs, canceled deals on the market and tightened lending standards, making it harder for first-time buyers to break into the property market.
Still, a model linking house prices to interest rates suggests the UK housing market remains overvalued.