Mortgage Misery: Bank of England Warns of £500 Monthly Cost Jump

The Bank of England has warned that struggling homeowners in the UK could face a significant increase in monthly mortgage repayments as fixed-rate deals expire and interest rates rise. Over 2 million mortgage holders are projected to see payments rise by £200 to £499 by the end of 2026, while almost 1 million people could see costs jump by over £500. However, the Bank noted that household debt remains below the peak reached in 2007. The warning comes as the average 2-year fixed mortgage rate in the UK rose to its highest level since 2008, raising concerns of a potential "mortgage catastrophe."