Big British banks pull mortgages: Pound tanks further while dollar soars
![FXOpen FXOpen](https://c.mql5.com/avatar/2022/5/628BCE78-F088.png)
Perhaps the greatest anomaly of this year remains why the US Dollar has held such a strong value against other major currencies given that the United States economy has been subjected to similar obstacles that have affected its peers in Great Britain and on the European Mainland.
As this week began, the British Pound collapsed in value to a record low against the US dollar as investors rushed to sell the currency and government bonds in a demonstration of skepticism over new Prime Minister Liz Truss’s economic plans, however since then further displays of low confidence have surfaced.
Yesterday, 10 major retail banks in the United Kingdom removed a plethora of mortgage products from the market, and considerably reworked the terms available on some of the mortgage products which remain on the market, in order to manage potential risk if interest rates rise to the expected 5 to 6% by January.
Should such a level of interest rates be reached, this would increase payments on personal and commercial debt substantially, as currently the interest rate is around 2.6%.
This, combined with a tanking Pound, and inflation heading for 18% by January according to Citigroup analysts last month, is a combination of equations which do not make for a healthy borrowing environment...More info: blog FXOpen