Bank Rate rise

Please see below the impact on the average variable rate mortgage if the bank rate is increased tomorrow.

Increase in average monthly mortgage payments:

Support for mortgage customers

Lenders stand ready to help anyone struggling with their mortgage payments. Customers should get in touch with their lender as soon as possible to discuss the options available. This could include:

• a part payment plan – where you pay a reduced amount covering the interest and some of the loan amount
• a mortgage term extension – where the length of the mortgage is extended to reduce the monthly repayment amount
• a temporary switch to an interest-only mortgage
• a payment concession, including a zero-payment concession, if appropriate

Arrears and possessions numbers also remain low, please see a blog here from UK Finance’s Sonia Fernandes to help put the numbers into context.

Split of fixed vs variable

There are a total of 8,501,000 residential mortgages outstanding, the bulk of which are fixed rate. These borrowers won’t see any immediate change in their monthly payment if the Bank Rate rises.

There are a total of 2,033,512 buy to let mortgages outstanding with the majority also being on fixed rates.

Fixed-rate deals ending

For homeowners, there are around 800,000 fixed-rate deals ending in the second half of 2023. Around 1.6 million deals are due to end in 2024.

Interest-only mortgages

Please see our interest-only data for 2022 here, and a blog from Head of Analytics James Tatch.