Quilter sees mortgage rates rising further as markets anticipate more tightening
TLT•Quilter said the Bank of England’s increase to 4% raises mortgage borrowing costs, with markets anticipating further tightening. It said higher rates could support annuity rates, while banks may not pass the increase fully to savers.
1. Borrowing costs rise
Quilter warned that the Bank of England’s rate increase to 4% raises mortgage borrowing costs. Borrowers nearing the end of fixed-rate deals face more expensive refinancing, and credit card APRs could rise further.
2. Impact on savings
Quilter said higher interest rates should support annuity rates, though banks may not pass the increase fully to savers.
