HSBC Warns of Further Rises in Mortgage Costs as Bank of England Prepares to Raise Bank Rate

HSBC's UK boss Ian Stuart has warned that mortgage costs have further to rise and that the bank is trying to limit the pain.

He also stated that 300,000 customers are coming off fixed rate deals this year and may be facing a shock in the current market.

The Bank of England is expected to maintain its policy of raising Bank rate to combat inflation, which has been a main factor behind the rising mortgage costs.

The rising cost of mortgages is also exacerbated by the financial market fallout that followed the Truss government's mini-budget of last September.

HSBC is fearful of a growing number of defaults as housing costs fuel the wider cost of living crisis.

The bank is prioritizing existing customers but has taken some market share recently as it moves to keep its promise that its rates will be responsible.

HSBC has also temporarily made its products unavailable to brokers due to increased lender rates and significant demand.