Brits Are Facing A Major Mortgage Crisis As Lending Rates Soar  

• U.K. borrowers are facing a cliff edge that could damage the economy as rising mortgage costs hit deal renewals and the number of products available shrinks, experts warned Monday.
• New figures from financial information company, Moneyfacts, showed the average two-year fixed rate mortgage on a residential property in Britain rose from 5.98% Friday to 6.01%, its highest level since Dec 1.
• Martin Stewart, director of the mortgage advisory London Money, said the last nine months had been “seismic” for the mortgage and housing sector, “on a par with the financial crisis,” although with different causes.
• Asked about support for struggling households, Prime Minister Rishi Sunak on Monday told ITV’s Good Morning Britain programme that the government’s priority was halving inflation and it needed to “stick to the plan.”’
• Markets are pricing in peak interest rates of almost 6%, up from the current 4.5%. A strong labour market report on June 13 sent rate expectations higher, with the Bank of England set to announce its latest interest rate decision on Thursday after enacting its 12th consecutive hike in May.

(Source: CNBC)