Over 5 Million UK Homeowners Face Higher Mortgage Repayments

Over 5 million households are projected to see their mortgage repayments increase by the end of 2028, according to a new Bank of England (BoE) Report.

It’s an increase from the 4 million households expected to see an increase in December.

The Bank’s Financial Stability Report predicts that the average increase will sit at around £45.

This is significantly smaller than the increases experienced over the last few years.

The median repayment increased £120 between 2022 and the end of 2024, the report revealed.

However, fixed-rate mortgage holders will be the hardest hit.

Almost 750,000 households are paying less than 3% on a fixed-rate deal and could see an average increase of £170 per month.

Why will mortgage repayments increase?

The conflict in the Middle East has put pressure on oil and gas supplies, driving up the cost of energy.

This, in turn, increased the level of inflation and the prospect of central banks raising interest rates to bring it back down.

Higher-than-expected interest rates are often passed on to homeowners by banks, resulting in higher mortgage rates.

What can you do?

If your fixed-rate mortgage is coming to an end, it’s important to compare offers and lock in the best value rate.

That’s because, generally speaking, fixed-rate deals tend to be cheaper than standard-variable rate mortgages.

Using a mortgage calculator or remortgage calculator is a great way to find out how much you can afford to borrow.

Speaking with a mortgage broker can also help you compare deals and find the right provider or mortgage with the best rates.