UK Mortgage Costs Could Fall For 1.5 Million This Year, BOE Says
- Financial Stability Report shows expected cuts ease burden
- 3 million still face higher payments by 2026, BOE says
The cost of housing has become a key battleground in the general election, to be held on July 4.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
More than 1.5 million UK households will see their mortgage payments fall by the end of this year if interest rates are cut as markets expect, according to the Bank of England.
The figures, from the bank’s twice yearly Financial Stability Report, show the mortgage shock caused by the spike in rates to 5.25% from 0.1% at the end of 2021 is beginning to ease. In total, around 2 million borrowers on variable rates or on short fixed-rate deals will be better off by the end of 2026, it added.