UK homeowners face rising mortgage rates as borrowing costs increase

UK homeowners are facing higher mortgage rates as borrowing costs rise. Virgin Money has increased its two- and five-year fixed-rate mortgages by 0.2%, impacting many borrowers whose low-rate deals are expiring this year. Concerns about the UK economy have led to a sell-off in government bonds, pushing borrowing costs higher. The 10-year gilt yield is now around 4.88%, its highest since 2008, affecting mortgage rates. While some expect a potential interest rate cut in March, the outlook remains uncertain. Higher mortgage rates could impact home prices, with forecasts suggesting a slowdown in price growth if rates exceed 5%.