UK mortgage rates spike to highest level since Truss tax plan spooked markets

By PAN PYLAS
Associated Press

LONDON (AP) — Homeowners and renters in the U.K. are facing further grim news as mortgage rates hit levels not seen since unfunded tax cuts announced by the government last fall spooked investors. Financial information company Moneyfacts says the average rate for a five-year fixed rate mortgage in the U.K. hit 6.01% on Tuesday from 5.97% the previous day. It comes after the Bank of England has raised interest rates to a 15-year high to battle high inflation. The worry is that mortgage rates could keep rising in the coming months because the bank is expected to keep hiking rates.