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HomeBusinessOne million homeowners facing £500-a-month mortgage shock

One million homeowners facing £500-a-month mortgage shock

Up to 650,000 households at risk of defaulting by end of year, Bank warns

Nearly a million homeowners are facing mortgage shock of at least £500-a-month, the Bank of England has warned.

Homeowners on cheap fixed deals who remortgage by the end of 2026 will see a sharp jump in costs of at least £6,000 a year, economists at the Bank said.

Of the near-million facing an increase of at least £500-a-month, around 200,000 will see their bills rise by £1,000 or more.

The Bank of England warned that the sharp increase in housing costs meant hundreds of thousands of families may struggle to pay their mortgages.

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