Projected monthly cost increase of mortgages in the UK 2024-2026
Households with mortgages up for renewal in the United Kingdom (UK) will face significantly higher monthly costs by 2026 because of the aggressive mortgage interest hikes since the beginning of 2022. The majority of mortgages up for renewal have effective mortgage rates of less than 2.5 percent - significantly lower than the current mortgage rates. As a result, about two million mortgage loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026. For the remaining 2.7 million mortgages, monthly costs will soar even higher. By 2026, the monthly payment of 862,000 mortgages is projected to go up by over 500 British pounds.