UK mortgage rates set to rise as bond sell-off drives up borrowing costs – business live

Rolling coverage of the latet economic and financial news Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Mortgage borrowers are being warned that borrowing rates are set to rise, as this week’s global bond sell-off ripples through the economy. Credit card, mortgage and auto loan interest rates will rise if bond yields rise, as the lenders seek to preserve loan book margins and manage their risk. All things being equal, you would expect a modest increase in mortgage rates based on what we’ve seen so far. “A 0.1 [percentage point] increase, which is what we’ve seen over the last week, is much less of an increase than when we saw a 0.5 [percentage point] increase in 10 days in March when the Iran war broke out.” 9am BST: Eurozone services PMI report for August 9.30am BST: UK services PMI report for August 9.30am: ONS Business insights and impact on the UK economy 10.30am: Challenger survey of US Job Cuts 3pm BST: US services PMI report for August..