The Bank of England warned already struggling homeowners could see monthly mortgage repayments rise sharply in the coming months, but stressed households today are not nearly as indebted as they were in the run-up to the global financial crisis.
U.K. households are currently being impacted by a cost-of-living crisis and higher interest rates as their fixed-rate mortgage deals expire.
Almost 1 million people, meanwhile, were projected to see their monthly mortgage costs jump by more than £500 over the same timeframe.
The central bank's report comes shortly after the U.K.'s average 2-year fixed mortgage rate rose to its highest level since 2008, deepening fears of an impending "mortgage catastrophe."
This key mortgage rate came in at 6.66% on Tuesday, notching its highest level for 15 years.
Persons:
BOE
Organizations:
Bank of England
Locations:
Ruskin Park, Lambeth, London, England