Top 5 This Week

Related Posts

Money blog: Alert – 400,000 households in the UK could see significant increase in mortgage expenses

Mortgage Costs Set to Rise for Three Million Homes – Significant Jumps Expected for 400,000

The Bank of England has issued a concerning update for mortgage payers, with about three million UK households expected to see increases in their mortgage repayments over the next two years. The Financial Policy Committee (FPC) has warned that around 400,000 households could face “very large increases” of more than 50% in their mortgage costs.

Despite recent positive news on inflation and the anticipation of a cut in interest rates later this year, the Bank’s latest Financial Stability Report paints a worrying picture for homeowners. The report also revealed that most households have already experienced an increase in their mortgage rates since borrowing costs began rising significantly in 2022.

Currently, interest rates are at a 16-year high of 5.25%, with the central bank voting to maintain this figure for the seventh consecutive meeting. While many economists predict a reduction in the base rate at the Bank’s next vote in August, the outlook remains grim for mortgage holders.

The report highlighted that a typical household coming off a fixed-rate mortgage before the end of 2026 could face a monthly increase of around £180. Additionally, higher mortgage rates have led to households and renters reducing their savings, further impacting their financial stability.

Despite the challenging economic backdrop, the Bank emphasized that UK lenders are still well-positioned to support households and businesses. However, the looming mortgage cost hikes serve as a stark reminder of the financial challenges facing many homeowners in the coming years.


Please enter your comment!
Please enter your name here

Popular Articles