The monthly mortgage payments of nearly a million households will rise by £500 due to soaring interest rates, the Bank of England warned. It said between now and the end of 2026, around 3.8 million households will fork out up to £199 a month more in repayments.
This is because their two or five-year fixed-rate deals will have expired, forcing them onto their lenders’ standard rates, which have risen due to the increases in the Bank’s base rate. More that two million mortgage holders will have to pay up to £499 more, and half a million will see their repayments increase by £500 to £749.
Around 450,000 households will have to find their monthly mortgage costs rising by £750 or more. The Bank said that 4.5 million people have seen their mortgage costs rise since its Monetary Policy Committee started hiking its base rate in late 2021 in a bid to bring inflation back under control.
