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Over 2.3m UK households face mortgage payment jumps in 2027
The Bank of England is widely expected to raise its base rate from 3.75 per cent to 4 per cent on Thursday, 5 November, its first rise in more than three years. The move would respond to UK inflation, which rose to 3.5 per cent in September. About 2.3 million households are due to come off fixed-rate mortgage deals in 2027, according to the banking industry body UK Finance. On a £200,000 mortgage taken out on a five-year fix in 2022, monthly repayments could rise from about £986 to £1,289, which is more than £3,600 a year extra. Mortgage approvals fell to a near three-year low in September, while remortgaging surged as borrowers try to lock in rates before they climb further. Markets price in up to four rate rises by next July, though many City economists expect two, and Barclays predicts another increase in early 2027.
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Over 2.3m UK households face mortgage payment jumps in 2027
The Bank of England is widely expected to raise its base rate from 3.75 per cent to 4 per cent on Thursday, 5 November, its first rise in more than three years. The move would respond to UK inflation, which rose to 3.5 per cent in September. About 2.3 million households are due to come off fixed-rate mortgage deals in 2027, according to the banking industry body UK Finance. On a £200,000 mortgage taken out on a five-year fix in 2022, monthly repayments could rise from about £986 to £1,289, which is more than £3,600 a year extra. Mortgage approvals fell to a near three-year low in September, while remortgaging surged as borrowers try to lock in rates before they climb further. Markets price in up to four rate rises by next July, though many City economists expect two, and Barclays predicts another increase in early 2027.