Bank of England Warns 750,000 Homeowners Face Mortgage Hikes

The Bank of England estimates that approximately 750,000 homeowners with mortgage deals under 3% interest will see their monthly repayments increase by an average of £170 as their fixed-rate terms expire this year. This shift stems from historic lows in mortgage rates several years ago, followed by a climb to higher sustained levels.

The central bank further projects a wider impact over the next few years, forecasting that more than 5 million homeowners will experience rising monthly mortgage repayments by the end of 2028. To mitigate these costs, homeowners are advised to compare new deals or consult mortgage brokers to avoid transitioning to expensive standard variable rates offered by lenders.