“Persistently high inflation and the recent rise in lending rates will prompt a correction in the UK housing market (Aa3 negative),” Moody’s Investor Service said in a report.

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LONDON – Britain’s biggest bank temporarily withdrew mortgage contracts through brokerage services on Thursday as the impact of higher interest rates ripples through Britain’s housing market.

HSBC told CNBC on Friday that it regularly reviews the situation, but did not specify whether the new deals would differ from its previous offerings. Higher rates are possible as the Bank of England continues to raise interest rates.

It comes eight months after the hundredSeveral mortgage offers have been withdrawn within a day after market chaos at the time fueled fears of rising prime rates.

In a statement issued on Friday, HSBC said: “We occasionally need to limit the amount of new business we can accept through brokers each day. All products and rates for existing customers are still available and we continue to review the situation regularly.”

The banking group said the protocol was to ensure “customer service commitments” were met and stressed it remained open to new mortgage business.

Rising rates

Prices fell 1.1% year-on-year, marking their first year-on-year decline since June 2020.

The Bank of England has raised its interest rate to 4.5% from 4.25% as the central bank struggles to deal with high inflation. which is currently well above the 2% targetin the amount of 8.7%.

The Organization for Economic Co-operation and Development predicts that the UK will have the highest inflation rate of any advanced economy this year.

Lenders and homeowners will be watching the central bank closely for its next key rate decision on June 22. The bank is widely expected to approve its 13th consecutive hike.

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