Business · Economy · 12 hrs ago
UK homeowners warned mortgage payments could rise by £1,500 a year
The Bank of England raised its base rate to 4% on November 5, citing inflation and rising energy costs.
Its latest forecast says average annual mortgage payments could be £1,500 higher by the end of 2029 than before the Middle East conflict.
The forecast is also about £700 higher than the bank's projection in July, and people whose fixed-rate deals are ending may be especially affected.
Homeowners are advised to check when their deals expire, compare offers from their lender and other providers, and consider fees as well as interest rates.
The government’s Mortgage Charter offers temporary help to eligible borrowers with participating lenders who are up to date on payments, including six months of interest-only payments or a longer mortgage term.
These options can raise costs later, and extending a term usually means paying more interest overall.
Borrowers worried about repayments should contact their lender early, before they fall behind.
The Bank of England warned that average annual mortgage payments could be around £1,500 higher by the end of 2029 than before the recent rise in energy prices.
The warning follows the Bank’s decision to raise its base rate to 4 per cent on November 5.
Its November Monetary Policy Report projected payments around £700 higher by the end of 2029 than forecast in July.
Homeowners, especially those nearing the end of fixed-rate deals, were urged to check their mortgage options and plan ahead.
- Who
- UK homeowners and mortgage borrowers, particularly those nearing the end of fixed-rate deals.
- What
- The Bank of England warned that average annual mortgage payments could be around £1,500 higher by the end of 2029 than before the recent rise in energy prices.
- When
- The Bank raised its base rate on November 5. The warning was reported on November 13, 2026.
- Where
- The United Kingdom.
- Why
- The Bank cited inflation concerns and rising energy costs.
This story does not have two clearly opposing sides.
The Bank of England raised its base rate to 4 per cent, citing concerns about inflation and rising energy costs.
The Mirror reported the Bank’s warning about projected mortgage payments.
- Base rate
- 4 per cent
- Projected increase
- Around £1,500 a year by the end of 2029 compared with before the recent rise in energy prices
- Compared with July forecast
- Around £700 higher by the end of 2029
- Mortgage Charter coverage
- Around 90 per cent of the mortgage market
What people are saying
Rising mortgage rates can put considerable pressure on household finances, particularly for homeowners who secured their existing deal when interest rates were much lower.
One of the biggest mistakes homeowners can make is leaving it too late.