 Nearly one million mortgage holders could see their monthly repayments increase by £500 or more over the next three years, it has been revealed. The boss of the Bank of England said there 'will be consequences' of higher borrowing costs, but insisted that major British banks are in a strong position to support those feeling the squeeze. Andrew Bailey was speaking after the Bank's half-yearly Financial Stability Report found that higher interest rates are gradually filtering through to homeowners who are coming off fixed-rate mortgage deals, typically lasting two or five years. It follows the central bank's policymakers lifting the bank rate to 5% last month, the 13th rise in a row. The last time interest rates were that high was in September 2008, amid the global financial crisis. Economists are expecting rates to be pushed up again next month, and predict that they could peak at between 5.5% and 6%. The average household will see their monthly interest payments go up by about £220 if they remortgage during the second half of this year, based on their mortgage rate going up by about 3.25 percentage points, the Bank said. Some households will see increases of up to £500 a month over the next few years (Picture: Getty) Borrowing costs will lead to 'consequences' the Bank has said(Picture: Getty Images) Nearly a million people could see repayments soar by more than £500 a month by the end of 2026. That includes about 200,000 homeowners who are facing a monthly mortgage cost hike of £1,000 or more. Some four million fixed-rate mortgage holders are still set to face a hike in borrowing costs between now and the end of 2026. Around 4.5 million already have, since rates started to rise in late 2021. Buy-to-let landlords are also being impacted by higher mortgage rates, which has caused some to sell up or pass on higher costs to renters, the Bank found.){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Nearly one million mortgage holders could see their monthly repayments increase by £500 or more over the next three years, it has been revealed.
The boss of the Bank of England said there ‘will be consequences’ of higher borrowing costs, but insisted that major British banks are in a strong position to support those feeling the squeeze.
Andrew Bailey was speaking after the Bank’s half-yearly Financial Stability Report found that higher interest rates are gradually filtering through to homeowners who are coming off fixed-rate mortgage deals, typically lasting two or five years.
It follows the central bank’s policymakers lifting the bank rate to 5% last month, the 13th rise in a row.