Bank of England Warns of Significant Mortgage Payment Increases for 3 Million Households

Interest rates at a 16-year high will push mortgage costs up, with some facing increases over 50%, but banks remain stable to support economic challenges.

• Around 400,000 households will see mortgage payments rise by more than 50%.
• Interest rates are currently at 5.25%, the highest in 16 years.
• A typical household could face an additional £180 monthly on mortgage payments by 2026.
• Despite financial pressures, UK banks are positioned to support households and businesses.
• High mortgage rates are expected to become the new normal, ranging from 3.5% to 4.5%.

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