Actions to watch out for due to a possible increase in the amount of the mortgage

Property site Zoopla, in its latest house price index, pointed out that rising interest rates will increase the cost of mortgage repayments by £2,500 a year. Homebuyers are currently enjoying average rates of 3.37% on a five-year fixed rate home loan, up from 2.64% in December 2021, on a £250,000 loan.

The UK property market has been under pressure with rising interest rates and the cost of living crisis.

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Bank of England Governor Andrew Bailey said to deal with the steep rise in the cost of living, the central bank needed to act more aggressively. The BoE has raised rates five times since December to 1.25% as it warned inflation could hit 11% by the end of this year.

Let’s take a look at 3 mortgage stocks that investors might be looking at for a potential mortgage hike.

Lloyds Banking Group Plc (LON: LLOY)

Lloyds Banking Group had a market capitalization of £29,208.33 million as of July 1, 2022. Year-to-date, Britain’s largest provider of retail and commercial financial services has offered its shareholders a return negative 10.76%, while its one-year return stands at -8.63. %. As of 08:18 (GMT+1), the company’s shares were trading at 42.58 GBX, up 0.63% on July 1, 2022.

OSB Group Plc (LON: OSB)

The lending business of OSB Group, the UK-based leading specialist mortgage lender, is supported by retail savings through Charter Saving Bank and Kent Reliance. The market capitalization of the company was £2,125.47 million as of July 1, 2022.

On a YTD basis, OSB Group offered its shareholders a negative return of 13.29%, while its one-year return stands at -3.62%. As of 08:20 (GMT+1), the company’s shares were trading at 480.80 GBX, up 0.04% from July 1, 2022.

NatWest Group Plc (LON: NWG)

The leading provider of banking and financial services listed on the FTSE 100 operates through a range of brands, such as NatWest, Royal Bank of Scotland, Ulster Bank, Child&Co., Coutts, Drummonds, FreeAgent, NatWest Markets, RBS International, Lombard, Isle of Man Bank and Holt’s Military Banking. The market capitalization of the company was £22,813.39 million as of July 1, 2022.

On a YTD basis, NatWest Group offered its shareholders a negative return of 2.70%, while its one-year return stands at 8.27%. As of 08:22 (GMT+1), the company’s shares were trading at 219.60 GBX, up 0.60% from July 1, 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental assessment or technical analysis. Any interest in stocks or sectors should be carefully assessed taking into account the associated risks.