UK 2-year mortgage rates top 6%, adding to housing strains

LONDON (Reuters) -Average two-year fixed mortgage rates for home buyers in Britain hit 6.01% on Monday, property data provider Moneyfacts said, taking the key borrowing cost for the housing market to its highest since December 2022.

The rate stood at 5.98% on Friday, Moneyfacts said.

The Bank of England is expected to raise its borrowing costs for a 13th time in a row on Thursday as it seeks to tackle stubbornly high inflation.

The increase in rates has slowed Britain's housing market and much of the impact on mortgage-holders is yet to be felt.

The BoE said in May that 1.3 million fixed-rate mortgages were still to mature before the end of 2023, and more are up for renewal in 2024 and beyond.

Moneyfacts said the average five-year fixed rate increased to 5.67% on Monday from 5.62% on Friday.

(Writing by William Schomberg, Editing by David Milliken)