Mortgage payments are becoming less frequent in the UK as a result of rising interest rates.

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Consumer borrowing has significantly decreased, and mortgage approvals in the UK declined more than anticipated in June. These trends suggest that the crisis is constraining the economy even further.

According to figures from the Bank of England, lenders offered 63,000 loans for the purchase of homes, which is a two-year low and 3�wer than in May. Unsecured debt taken on by consumers increased by $2.2 billion, far more than the average for the preceding six months.

The decline in mortgage lending suggests that the housing market, which has been expanding during the epidemic, is losing steam. The largest mortgage lender in the UK, Lloyds Banking Group Plc, said this week that home prices will only increase by 1.8 percent this year and decline by 1.4 percent in 2023.

The rating reflects higher borrowing costs as a result of interest rate increases made by legislators to fight inflation.

The effective interest rate on new mortgages increased to 2.15 percent in June, according to BOE statistics, the highest level since the end of 2016.

The highest hike since at least 2015 was the 20 basis point increase from May. The rise in consumer credit may in part be a reflection of people’s financial struggles. According to a research by the Office for National Statistics, more than a fifth of respondents said they had to take out new loans in the previous month.

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