As the new Prime Minister and Chancellor prepare for their first budget, analysts suggest that higher borrowing costs could lead to increased mortgage rates. The situation is compounded by rising borrowing costs in other major economies and heightened demand for loans from tech companies investing in AI.
Watch for the upcoming budget on October 28, as it may reveal how the government plans to navigate rising borrowing costs. Increased mortgage rates could impact homebuyers, while potential cuts in public spending may affect support for households facing inflation.