One million more UK homeowners set to face higher mortgages

The impact of the Iran war means a million more homeowners face higher mortgage bills than the Bank of England had previously expected. Just over five million homeowners should expect their monthly mortgage repayments to increase by the end of 2028, according to Bank forecasts. That compared to four million projected by the Bank in December. However, the Bank's Financial Stability Report said the hit would not be as hard as seen in recent years. A typical owner-occupier rolling off a fixed rate in the next two years is likely to face an increase of £45 on their monthly mortgage bill, the Bank said. That compares to a typical rise of £120 for those getting a new deal between the end of 2022 and end of 2024.