Flash - even bigger increases in the cost of fixed rate mortgages now expected next week

3 months Libor has only gone up 0.02% today and so the rate of increase has slowed dramatically, but the rate is now up to 6%, its highest since April and a rise of 0.3% on the week.andnbsp;

The closing swap rates won't be available until this evening but 2 - 5 year gilt yields are currently up today by a whopping 0.22% and swap rates are likely to have gone up by a similar amount.

This would take 2 year swaps up to about 5.7%, a rise of 0.33% on the week and a whopping 0.5% up from Monday's closing rates.

Expect a raft of increases, probably of around 0.25%, in the cost of fixed rate mortgages next week and smaller rises in tracker rates.

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