EL7.AI
Macro Economy•7 July 2026•
1 min read

One Million UK Homeowners Face Higher Mortgage Costs Over Next Two Years

Key Facts

1One million more UK homeowners are expected to face higher mortgage payments when moving to new deals over the next two years.
2Homeowners face paying an average of £45 more per month when they transition to new mortgage deals.

Amid persistent cost-of-living pressures in the United Kingdom, approximately one million homeowners are expected to face higher mortgage payments when moving to new deals over the next two years. According to reports, borrowers face paying an average of £45 more per month as they transition to new financing arrangements. This shift is driven by the expiration of older, low-interest fixed-rate mortgage deals, forcing households to refinance at the higher prevailing market rates.

These projections coincide with relative stability in the British housing market, as Nationwide House Price data released on July 1, 2026, showed annual growth of 2.2%, slightly below the 2.4% forecast. In an international context, the US MBA 30-Year Mortgage Rate stood at 6.57% per market data in early July, reflecting a global challenge in mortgage costs that directly impacts consumer disposable income and broader economic momentum.

Investors should monitor the impact of these rising costs on retail spending, particularly as the market awaits a speech from Bank of England Governor Andrew Bailey for clues on future monetary policy.