BOE Says 4 Million Households Face a Jump in Mortgage Costs

  • Average borrower will pay £3,000 a year more to service loan
  • Landlord exodus threatens to drag UK house prices lower
UK Latest: BOE’s Bailey on Rising Mortgage CostsSource: Bloomberg
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The Bank of England warned that some 4 million households will face a sharp increase in mortgage costs, with the average borrower paying almost £3,000 a year more.

Governor Andrew Bailey said Wednesday that the surge in mortgage rates will have an “impact clearly” on finances as the central bank’s Financial Stability Report predicted that 1 million households face a £500-plus hike in monthly repayments.