British banks stopped issuing loans after the fall of the pound — EADaily, September 27, 2022 — Economy News, Europe News

UK banks have stopped issuing some types of mortgage loans after a sharp fall in the pound. This is reported by The Telegraph, citing the example of the British bank Halifax, which specializes in mortgage lending, has already announced the temporary cancellation of mortgage offers, transactions for which are concluded through brokers and require payment of a commission, but have a lower interest rate.

The bank said that this decision was “the result of significant changes in pricing in the mortgage market.” Just like Halifax, smaller banks are doing the same. In particular, Virgin Money removed all mortgage offers for new customers, and Nottingham for Intermediaries decided to revise rates on some mortgage transactions.

According to the publication, to date, only about ten banks have taken similar measures, and this list is likely to grow.

According to experts, the decisions of credit institutions are connected with the expected increase in interest rates by the Bank of England. Recall that now it is 2.25 percent, and this is the maximum since 2008. According to forecasts, next year it can reach 6 percent. This means UK residents will have to pay £800 more in mortgage payments each month.

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