Mortgage costs are set to keep rising

Cuts to Bank Rate may be expected to ease some short-term financial pressure this year, but a report from the Bank of England suggests that mortgage payments are likely to rise for around three million households by 2026.

Prepare for an increase

The Bank observed, ‘The share of households spending a high proportion of their income on mortgage payments is still expected to increase slightly over the next two years.’ It is predicted that, by the end of 2026, about 30% of mortgage holders will be subject to at least a £100 increase in their monthly payments¹. A typical household will see their repayments go up by 28% to £180 per month, but around 400,000 borrowers could have an increase of 50% or more.

Households show resilience

Although this is concerning, the Bank commented that ‘UK households and businesses have remained resilient to the impact of higher interest rates’. Also, it is forecast that the number of mortgage holders who cannot meet their payments will remain below the figure seen following the 2008 financial crisis.

Don’t panic, seek advice

We can help you to manage your finances, considering any potential increase to your mortgage repayments.

Your home may be repossessed if you do not keep up repayments on your mortgage

¹ BoE, 2024

18 September, 2024

More news

16 September, 2024

If you already have adequate cover in place, it can be easy to assume that there is nothing more to

Writing life insurance policies in trust Having sufficient life insurance is a significant way of safeguarding your loved ones’ financial future. But you can go the extra mile by writing that policy

9 September, 2024

Following Labour’s landslide election win, much of the nation is waiting to find out what is in st

Delivery of new homes In Labour’s manifesto, a pledge to build 1.5 million new homes over the next Parliament was made. To make this possible, Angela Rayner announced that the nation’s new mandato

20 August, 2024

As the UK adjusts to the aftermath of the General Election, many will be wondering what this means f

Undeterred buyers In a survey carried out before 4 July, 95% of prospective buyers said that their moving plans were unaffected by the election. This is reflective of activity seen around previous UK