The collapse of Silicon Valley Bank was bad news for investors but it may prove good news for mortgage customers.
Despite this, the failure of SVB has triggered a series of events, which will trickle down to impact the UK economy, including lower mortgage rates. These rates are used by banks and building societies to predict the path of the base rate in the future and is the yardstick by which they lend money to each other. When they are higher, lenders push mortgage rates up so they can maintain a profit.
David Conway, Director at Clayhall Financial Services, said: “The reaction in the market to Silicon Valley Bank’s collapse has seen swap rates nosedive.
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