Mortgage borrowers facing soaring monthly payments were offered little solace as the new Chancellor Jeremy Hunt took an axe to virtually all of his predecessor’s mini-budget tax cut plans.
Mortgage lenders started to pull their best deals just hours after Hunt announced he was ditching all but two of his predecessor’s planned tax cuts.
Hunt’s statement was intended to give markets confidence in the UK’s financial credibility, and while gilt yields and the pound both rallied, retail banks began hiking mortgage rates almost immediately.
NatWest announced just after 4pm that two-year fixed rate mortgages were going up by 0.4% and by 0.75% on five-year deals on all purchase, remortgage and first-time buyer deals.