Highlights

• The sharply rising inflation and severe cost-of-living crisis are putting intense pressure on the Bank of England (BOE) to raise the interest rate yet again.
• Lloyds on Wednesday announced an increase in the fixed rates on some of its mortgages.

The sharply rising inflation and severe cost-of-living crisis are putting intense pressure on the Bank of England (BOE) to raise the interest rate yet again. That will squeeze the monthly budget of millions of mortgaged UK house owners.  

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The BOE has already raised interest rates four times since December 2021. Now, it is expected to raise it further from 1% to 1.25% next week. But before any decision from BOE, the UK’s biggest bank has significantly raised mortgage rates, which will affect the new homeowners as they will now have to pay hundreds of pounds more for mortgages.

One of the UK’s largest retail and commercial services providers, Lloyds on Wednesday announced an increase in a fixed rate on some of its mortgages by as much as 0.81 percentage points for new customers. Whereas Halifax, which operates as a trading division of Bank of Scotland, has raised rates of a certain 10-year loan by 0.25 percentage points, five-year fixes by up to 0.3 percentage points, and two-year fixed-rate deals by up to 0.6 percentage points.  

UK households are now facing near double-digit inflation. According to Moneyfacts, the average rate of a five-year deal has now risen to 3.4pc, from 2.88pc in March, whilst the average two-year fixed rate deal has risen from 2.65pc to 3.28pc in the same period. Meanwhile, separate research has shown that banks have not given a great deal to savers.

Here are 3 FTSE-listed stocks that an investor may consider if BOE raises interest rate yet again. 

1. Lloyds Banking Group Plc (LON: LLOY)

The shares of the UK’s largest retail and commercial financial services provider, Lloyds Banking Group plc, were up by 0.39% at GBX 46.12, at 10:00 AM (GMT+1) on 9 June 2022. The company has given its shareholders a year-to-date return of -4.51%, while its one-year return stands at -6.66%. the FTSE 100-listed company’s market cap stands at £31.979.00 million as of 9 June 2022.

Related Read: PSN, TW., VTY: Real estate stocks to eye amid rising house prices 

2. HSBC Holdings Plc (LON: HSBA)

With a market cap of £104,542.11 million as of 9 June 2022, the share of the FTSE 100-listed one of the largest banking and financial services institutions in the world was trading at GBX 519.80, down by 0.08% at around 10:00 AM (GMT+1) on 9 June 2022. HSBC Holdings Plc has given its shareholders a year-to-date return of 15.93%, while its one-year return stands at 17.03%.   

Related Read: AZN, STAN, BATS, BA.: Stocks to focus on as World Bank warns of recession

3. Barclays Plc (LON: BARC)

The shares of the UK-based multinational universal bank, Barclays Plc, were up by 0.55% at GBX 169.48, at 10:00 AM (GMT+1) on 9 June 2022. The company has given its shareholders a year-to-date return of -9.46%, while its one-year return stands at -10.35%. the FTSE 100-listed company’s market cap stands at £28.150.82 million as of 9 June 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 valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.