The Bank of England (BoE) stated that the monthly mortgage payments of 1 million people in the country are expected to increase by at least 500 pounds per month by the end of 2026.
The Bank of England has released its Financial Stability Report.
The report states that due to the rising policy rate, approximately 1 million homeowners’ loan payments in the country are expected to increase by at least £500 per month until the end of 2026, while the monthly loan payments of the other 2 million home loan holders are expected to increase by between £200 and £499 by the end of 2026. was recorded.
Speaking at the meeting held on the Financial Stability Report, BoE Chairman Andrew Bailey stated that the increased interest rates will have consequences for borrowers and said, “(The increased policy rate will clearly have an impact on those with loan debts). This is part of the transmission of monetary policy, there is no doubt about it. ” used the phrases.
Stating that British banks are in a position to support consumers, Bailey said, “What we are trying to do here is the transmission of monetary policy… The two things I would emphasize are the flexibility of the banking system and supporting customers… So balancing the consequences of that with the ability to manage.” said.
Due to the increasing policy rate in the UK, the average 2-year fixed loan interest rate rose from 6.66 percent to 6.70 percent. Thus, the average 2-year fixed mortgage loan interest in the country reached its highest level since August 2008.
In the UK, the average 5-year fixed housing loan interest rate increased from 6.17 percent to 6.20 percent, the highest level since October last year. Last year, the average 5-year fixed housing loan interest in the country was around 3 percent.
Experts state that rising interest rates are putting pressure on home sales.