What action has the central bank taken and how does this affect households? And how UK bond markets are linked to mortgages
HSBC and Santander, two of the UK’s largest mortgage providers, suspended new deals on Tuesday, while Nationwide increased rates, as homebuyers chased a dwindling supply of home loans. Together with Lloyds Banking Group, which suspended some products on Monday, the lenders account for about half of the UK mortgage market. The pause in new lending comes after yields on UK bonds rose sharply following sterling’s fall against the dollar to its lowest rate in decades.
11 out of 14 sectors saw new orders fall, according to the Lloyds Bank UK sector tracker.