UK mortgage borrowers brace for rate jump amid global bond sell-off

Swap rates rise to three-year high as increase in oil prices leads to fears of higher inflation

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Homeowners in the UK are braced for a jump in mortgage rates, driven by higher inflation and interest rate increase expectations amid turmoil in the global bond markets.

UK swap rates, which lenders use to price mortgages, have risen to a three-year high, as this week’s global bond market sell-off ripples through the economy.