An additional one million UK homeowners are now expected to face increased mortgage bills compared to earlier projections by the Bank of England. The shift in outlook is primarily attributed to the economic impact of the ongoing conflict in Iran.
According to the latest forecasts from the Bank, just over five million homeowners should anticipate rising monthly mortgage repayments by the end of 2028. This figure marks a significant increase from the four million homeowners projected to be affected in the Bank’s December forecast.
Despite this upward revision in the number of affected borrowers, the Bank’s Financial Stability Report suggests that the financial burden will not be as severe as the impacts experienced in recent years. However, the report also notes a shift in expectations for the long term. Borrowers are now considered unlikely to see their repayments fall in the coming years, a change from previous forecasts made before the onset of the Iran conflict.
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