One million more UK homeowners set to face higher mortgages
Summary
The Bank of England now expects one million more UK homeowners to face higher mortgage payments by the end of 2028 due to the impact of the Iran war. Around five million homeowners could see their mortgage bills rise, with many facing increases when their current fixed-rate deals end.Key Facts
- The Bank of England projects more than five million UK homeowners will have higher monthly mortgage payments by 2028.
- This is an increase from the four million homeowners previously expected in December.
- Homeowners ending fixed-rate mortgage deals in the next two years may see their bills rise by about £45 per month.
- Those with very low interest rates (under 3%) now ending deals could face average payment increases of £170 monthly.
- Over 80% of mortgage customers currently have fixed-rate deals that keep payments steady until the deal ends.
- Borrowers remortgaging in the next few years are unlikely to see mortgage payments fall as previously predicted.
- The Bank reported that lower-income households will feel more pressure from higher energy costs alongside mortgage increases.
- Despite challenges, household debt remains low compared to past years and widespread cuts in consumer buying are not expected.
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