Around 40% of mortgage holders will see an increase in their monthly repayments in the next 12 months, the Bank of England has warned.
Speaking at the Treasury Select Committee Sarah Breeden, executive director for Financial Stability Strategy and Risk at the Bank of England, laid out the central bank’s projections.
She told MPs: “20% [of mortgages] are floating so they will see the interest rate increase come through immediately.
“Of the 80% that are fixed, our data suggests that around a quarter of those come out of that in the next 12 months.
“Of that 100% stock of mortgages actually only 40% are going to see higher rates in the immediate period ahead.”
However, the Bank of England anticipates that the financial support on offer to households by both the Government and lenders should be enough to shield them from serious trouble.
Overall the bank estimates that the proportion of households at high risk of falling behind will hit 1.8% by the end of the year.
