The average increase is set to be £146 a month
About 4.4 million UK households could see hikes to their mortgage repayments over the next three years, the Bank of England said. The Bank’s Financial Policy Committee said this will include £500-per-month hikes for the mortgages of around 420,000 households.
But the central bank stressed that UK lenders are still in a strong position to support households and businesses, even if the economic backdrop worsens. The Bank’s latest Financial Stability Report showed that most households have already had an increase in their mortgage rates since borrowing costs began rising substantially.
A typical household rolling off a fixed-rate mortgage in the next two years is due to face a jump of around £146-a-month, the report said – down on the last projection of £180 in June. About 27% of mortgage holders, or 2.4 million people, are expected to see monthly payments decrease before the end of 2027, having already seen rates rise.
Officials wrote: “Following elections in many countries, a range of macroeconomic and financial policies may change under newly-elected governments.” In a survey of finance firms like banks and asset managers, “the proportion of those citing geopolitical risks reached its highest level” recorded by the poll.
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