Manya Rathore
Research expert covering India
Mortgages in the United Kingdom (UK) - statistics & facts
Mortgage rates in the UK were on a downward trend for more than a decade until late 2021, improving the affordability of housing loans but also fueling demand and price growth. Under the pressure of soaring inflation, the Bank of England hiked interest rates in 2022, leading to a dramatic increase in mortgage rates and a heavier financial burden for homebuyers. Higher interest rates make it harder for homebuyers to get on the property ladder and are an issue when borrowers need to renew their loans. That was the case for 3.9 million fixed-rate mortgages with a mortgage deal ending in 2026. Most homeowners were expected to face a monthly increase in repayments of less than 99 British pounds. Nevertheless, for more than a million borrowers, this figure is projected to exceed 300 British pounds.
