Around one million households are now facing increased mortgage costs over the next three years, the Bank of England has warned. The Bank's boss has said today (July 12) that almost a million mortgage holders could see their monthly repayments hike by another £500 by the end of 2026.
The central bank’s governor Andrew Bailey warned that there 'will be consequences' of higher borrowing costs to come, which will affect households who already have or are set to see their monthly mortgage outgoings soar by hundreds of pounds.
It comes after yesterday's announcement that mortgage rates are now at a 15-year high, as the average rate of a two-year fixed deal has now soared to 6.66 percent, according to Moneyfactscompare.co.uk. It follows the bank’s decision to raise the base rate to 5 percent last month, which was the 13th rise in a row.
