The Governor has warned 'there will be consequences'
By the end of 2026, around a million households with a fixed-rate mortgage will have seen their monthly repayments go up by about £500, the Bank of England has said.
Another four million or so households on a typical two-year or five-year fixed deal will likely see their payments go up by the end of 2026. “What we are seeking to do here… is balance having the transmission of monetary policy with – the two things that I would emphasise – the resilience of the banking system, and the ability to support customers and therefore manage the consequences of this.
Sir Jon Cunliffe, the Bank’s deputy governor, said there are some “big differences” between the situation now and 15 years ago, the last time that interest rates were this high.
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