Mortgage stocks to watch as UK borrowing hits record high

Highlights

• Surging inflation-led interest payments have driven the UK budget deficit up to £22.9 billion in June.
• This is the second highest growth it has seen since the records began in 1993.
• The total interest payments hit their all-time high of £19.4 billion in June alone.

Surging inflation-led interest payments have pushed the UK budget deficit up to £22.9 billion in June. This figure is the second highest since the records began in 1993, according to the recently released data from the Office for National Statistics (ONS). 

According to the ONS data, June's borrowing was £4.1 billion higher than the last year’s amount. Even the interest payment saw a significant rise of £10.3 billion compared to the same month last year. The total interest payments have now hit their all-time high of £19.4 billion in June alone, thus making it more than double the previous monthly record.

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According to the ONS data, June's borrowing was £4.1 billion higher than the last year’s amount. Even the interest payment saw a significant rise of £10.3 billion compared to the same month in 2021. The total interest payments have now hit their all-time high of £19.4 billion in June alone, thus making it more than double the previous monthly record.

The UK's government's total spending stood at £86 billion in June, an increase of £9 billion. The rise came mainly from a £10.3 billion increase in the interest paid on government loans.

Amid rising inflation and interest rate, let's explore 3 mortgage stocks.

Barclays Plc (LON: BARC) 

With a market cap of £59,117.57 million as of 21 July, the share of the multinational universal bank was trading at GBX 158.60 at 11: 30 AM (GMT+1). BARC shares on Thursday, were up by 0.61% at the time of drafting. BARC has given its shareholders a negative return one-year return of -1.97% and YTD returns of -15.26%.

OSB Group Plc (LON: OSB) 

OSB Group Plc’s shares on 21 July was trading at GBX 505.50 and was up by 1.96% at 11: 40 AM (GMT+1). OSB’s market cap stood at £2,186.67 million with an EPS standing of 0.43. The FTSE 250-listed company has given its shareholders a positive return one-year return of 12.62%, while YTD returns stand at -8.93%.

HSBC Holdings Plc (LON: HSBA) 

The share of one of the world's largest banking and financial services institutions was trading at GBX 516.50 and was down by 0.25% at 11: 30 AM (GMT+1). The FTSE 100 listed company's EPS stood at 0.62. The Financial services company has given its shareholders a positive one-year return and YTD return of 30.68% and 15.23%, respectively. 

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.