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Rising rates, topsy-turvy pound hurt Hong Kong BN(O) migrants’ path to home ownership in Britain
- Interest rates could top 5.75 per cent in Britain next year, according to analysts
- Pound fell to a half-century low against the dollar on September 26, but has recovered much of its losses
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Rising interest rates, combined with instability in the British pound, could make it much more difficult for newly arrived Hongkongers who have relocated to Britain to get on the nation’s property ladder, according to property experts and advocates for newcomers.
British Prime Minister Liz Truss’ ill-fated plan to address a cost-of-living crisis through a combination of massive borrowing and some of the largest tax cuts in a half-century unnerved financial markets and sparked speculation the Bank of England will make additional interest rate increases.
Truss dramatically rowed back on some of those tax cuts in an effort to restore investor confidence, and fired her Chancellor of the Exchequer Kwasi Kwarteng on Friday.
The pound slumped on the back of the news, but remained well above a record low on September 26. It is still more than 3 per cent lower against the dollar than when Truss was confirmed as prime minister on September 6.
The instability has filtered to Britain’s housing market, with dozens of lenders withdrawing new mortgage offers in recent days in anticipation of another sharp rate rise as soon as the Bank of England’s next monetary policy meeting in November.
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Hong Kong migrants to UK struggle to adapt, many willing to accept lower pay and job changes
Hong Kong migrants to UK struggle to adapt, many willing to accept lower pay and job changes
Some 1,600 mortgage products were pulled in a 72-hour period in the last week of September after the borrowing and tax-cutting package was announced, according to financial information website, moneyfacts.co.uk.
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