Bank of England Warns Millions of UK Households of Rising Mortgage Costs

Over 4 million homeowners are expected to face higher repayments by 2027, with geopolitical and economic risks adding to financial uncertainty.

The Bank of England projects that 4.4 million UK households will refinance onto higher mortgage rates by the end of 2027, with 420,000 facing monthly increases exceeding £500.
Roughly 2.7 million borrowers will see rates above 3% for the first time, while 1 to 1.5 million households will experience a second increase after previously refinancing at higher rates.
Interest rates have eased slightly in 2024, with two recent cuts bringing the base rate to 4.75%, offering some relief to 2.4 million borrowers who had already faced rising costs.
The Bank highlighted growing global risks, including geopolitical tensions, trade fragmentation, and sovereign debt pressures, as threats to UK financial stability.
While UK households and businesses remain resilient overall, the Bank emphasized continued caution due to inflationary pressures, wage growth, and potential trade disruptions tied to global political shifts.