LONDON, June 9 Reuters Mortgage rates in Britain rose again on Friday as economists warned that rising borrowing costs would put the housing market under renewed strain.

The average rate on a twoyear mortgage deal across the range of loantovalue ratios rose on Friday to 5.82, compared with 5.30 a month ago, financial data provider Moneyfacts said.

Stubbornly high British inflation data last month sparked a big jump in market interest rates as investors scrambled to price in more increases in borrowing costs from the Bank of England in coming months.

Interest rates offered by mortgage lenders have soared in response. Late on Thursday, HSBC temporarily withdrew mortgage products for new customers until Monday.

To ensure that we can stay within our operational capacity and meet our customer service commitments, we occasionally need to limit the amount of new business we can take each day, an HSBC spokesperson said.

Rival lender Nationwide Building Society also raised its mortgage rates on Friday, having already revised them up twice since last month39;s Bank of England interest rate hike.

On Friday, consultancy Oxford Economics predicted a 10 peaktotrough drop in house prices, based on the BoE raising interest rates to 5.

This repricing of mortgage products coincides with the peak period for existing fixed rate deals ending, said Andrew Goodwin, chief economist at Oxford Economics.

This will maintain the squeeze on household finances, offsetting the boost from…