LLOY, OSB, NWG: Stocks to watch amid possible hike in mortgage amount

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LLOY, OSB, NWG: Stocks to watch amid possible hike in mortgage amount

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 LLOY, OSB, NWG: Stocks to watch amid possible hike in mortgage amount
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Highlights

  • Property site Zoopla revealed that the rising interest rates would add up to the cost of mortgage repayments by £2,500 a year.
  • The Bank of England has raised rates five times since December to 1.25%, as it warned inflation might hit 11% by the end of this year.

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

The UK housing market has been under the pump with the rising interest rates and the cost-of-living crisis. 

Rising interest rate will add to the cost of mortgage repayments by £2,500 a year.

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Bank of England Governor Andrew Bailey said to address the sharply rising cost of living, the central bank needs to act more aggressively. BoE has raised rates five times since December to 1.25%, as it warned inflation might hit 11% by the end of this year.

Let us take a look at 3 mortgage stocks that investors may look closely amid a possible hike in the mortgage amount .

Lloyds Banking Group Plc (LON: LLOY)

Lloyds Banking Group enjoyed a market cap of £29,208.33 million as of 1 July 2022. On a YTD basis, Britain's largest retail and commercial financial services provider offered its shareholders a negative return of 10.76%, while its one-year return stands at -8.63%. At 08:18 AM (GMT+1), the company’s shares were trading at GBX 42.58, up by 0.63% as of 1 July 2022. 

OSB Group Plc (LON: OSB)

UK-based leading specialist mortgage lender OSB Group’s lending business is supported by retail savings through Charter Saving Bank and Kent Reliance. The company’s market cap stood at £2,125.47 million as of 1 July 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%. At 08:20 AM (GMT+1), the company’s shares were trading at GBX 480.80, up by 0.04% as of 1 July 2022. 

NatWest Group Plc (LON: NWG)

The FTSE 100-listed major banking and financial services provider 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 company’s market cap stood at £22,813.39 million as of 1 July 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%. At 08:22 AM (GMT+1), the company’s shares were trading at GBX 219.60, up by 0.60% as of 1 July 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.

 

 

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