Mortgage borrowers brace for hikes

The Bank of England has warned that approximately 3.6m mortgage borrowers will experience increased repayments over the next three years. This rise primarily affects the 41% of households that have not renegotiated their home loans since interest rates began to climb in 2021. The financial policy committee estimates that homeowners transitioning off fixed rates in the next two years will see an average monthly repayment increase of £107, which is a 14% rise, slightly lower than the previous forecast of £146. The number of homeowners expected to refinance at higher rates has decreased from 4.4m to 3.6m. The Bank has also suggested relaxing affordability rules for mortgage lending to assist more individuals in entering the housing market. 

The Times (10/07/2025)