Bank of England Sees 5 Million Households Hit by Higher Mortgages by 2028 as Rates Stay Near 5%
Updated
Updated · Financial Reporter · Jul 7
Bank of England Sees 5 Million Households Hit by Higher Mortgages by 2028 as Rates Stay Near 5%
3 articles · Updated · Financial Reporter · Jul 7
Summary
More than 5 million households are now projected to face higher mortgage repayments by end-2028, up from nearly 4 million in the Bank of England's December forecast.
Quoted mortgage rates have risen since December after market rates climbed following the West Asia conflict: average two-year fixes reached 4.92% at 75% LTV and 5.32% at 90% LTV.
£45 a month is the projected median increase for a typical borrower refinancing in the next two years, far below the roughly £120 monthly rise seen between end-2022 and end-2024.
Nearly 750,000 households still face sharper pain in 2026: borrowers rolling off fixes below 3% are expected to see repayments jump by an average £170 a month.
Most two-year fixed borrowers refinancing by end-2028 are now expected to remortgage near their current rate, meaning little relief ahead rather than the falls forecast before the Iran war.