Mortgage rate jumps overnight thanks to ‘Trumpflation’
Original Article Summary
The average 2-year residential mortgage rate has risen to 5.35%, up from 4.83% at the start of March. This is the highest average rate since March 2025, Moneyfacts data shows, which would add an extra £900 per year to the cost of borrowing £250,000 over 25 years. Adam French, head of consumer finance at Moneyfacts, […] The post Mortgage rate jumps overnight thanks to ‘Trumpflation’ appeared first on PropertyWire.
PropMatch Curated Analysis
UK mortgage rates have jumped overnight to 5.35% due to 'Trumpflation' concerns, with potential to reach 5.50-5.75%, adding £900-1,500 annually to typical £250k mortgages and significantly impacting property investment economics.
Investor Relevance
Rising mortgage costs directly reduce investment returns, affect refinancing strategies, and impact acquisition affordability. Investors need to reassess deals, consider fixing rates, and adjust yield expectations for leveraged investments.
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