Mortgage payments ‘will rise for half of UK homeowners over next three years’

About 31% of all UK mortgage holders, or 2.7 million households, are expected to refinance on to a rate of more than 3% for the first time before the end of 2027. Photograph: Joe Giddens/PA

The mortgage payments of half of UK homeowners will rise over the next three years, leaving 4.4 million households facing extra pressure on their finances, the Bank of England has said.

The Bank’s financial policy committee said this would include £500-a-month increases for the mortgages of about 420,000 households.