By 2027, it predicts that payments on about 4.4 million mortgages will increase, with an increase of £500 per month for approximately 420,000 homeowners.
The Bank stated that consumers were better prepared to handle mortgage repayments than anticipated earlier this year, and that payments for roughly 25% of borrowers are expected to decrease.
War, trade tension, cyberattacks, and geopolitical tensions are among the “significant” threats to global financial stability, the Bank added, warning that global economic risks have been increasing.
According to the Bank’s most recent Financial Stability Report, household finances have generally remained strong.
