Millions in UK brace to remortgage on worse deals as rate rise looms
Summary
More than 2.3 million UK households are due to leave fixed-rate mortgage deals in 2027, when borrowing costs may be higher. Markets expect the Bank of England to raise its base rate from 3.75% to 4% on 5 November, as inflation and energy costs put pressure on household budgets.Key Facts
- UK Finance estimates that 2.3 million households will reach the end of fixed-rate mortgage deals in 2027.
- About 700,000 borrowers were expected to switch to new mortgage rates between July and December 2026.
- Financial markets expect the Bank of England to raise its base rate by a quarter point, from 3.75% to 4%, on 5 November.
- Market expectations point to as many as four quarter-point rate rises over the next 12 months.
- UK inflation reached 3.5% in September, according to the article.
- UK mortgage approvals fell to a near three-year low in September as borrowing costs rose.
- The Office for Budget Responsibility forecast that household disposable incomes would fall by 0.6% in 2027 after inflation.
- EDF forecast that the household energy price cap could rise by more than £400 in January.
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