Updating post from Reddit.
If you are discussing quotes with your Mortgage Adviser, now could be the time to commit before everything is re-priced.
>Yields on long-term gilts — the bonds through which the Treasury finances Britain’s debt — have surged to levels not seen since the late 1990s.
>The message from markets today is uncomfortably clear: lenders are demanding a higher premium to finance the state, and households will pay the price.
>The link between gilt markets and mortgage rates is both direct and unforgiving. Mortgage lenders price their products in part against the swap rates that move in line with government bond yields. When investors demand more to hold gilts, banks swiftly adjust.
>Every wobble in confidence is transmitted swiftly into the mortgage market. Homeowners thus find themselves hostage not only to central bank policy in Washington and London, but to the credibility of Westminster.
>The Bank of England is under pressure to consider rate cuts, particularly if US inflation softens and the Federal Reserve leads the way. A Reuters poll found that out of 62 economists, 50 predicted a 0.25% cut – but not until November. And even if there is a further interest rate cut, any easing from Threadneedle Street may be offset if gilt yields remain stubbornly high. In effect, even if the Bank lowers the base rate, markets may prevent mortgage rates from falling as quickly as borrowers hope.
Source: The Mortgage Introducer
And where is your source for this hyperbole?
I’ve not seen this nonsense reported elsewhere.
Why have you cropped out the publisher?
Its linked on the bottom.
The photo is from the email they sent, but its also reported elsewhere like This is Money,
> The yield on 30-year UK government bonds, known as gilts, rose as much as 9 basis points in trading today to 5.73 per cent – the highest level since May 1998.
> As a result, it is likely we will see mortgage rates rise, rather than fall over the coming weeks. Nicholas Mendes of mortgage broker John Charcol said: 'Gilt yields and swap rates move together, and lenders use swaps as the basis for fixed-rate products.