The number of households to spend more than 70 percent of income on mortgage payments this year has been estimated to drop from 650,000 to nearly 500,000.
The share of UK households spending a high proportion of their income on mortgage payments is expected to be lower than previously thought, the Bank of England (BoE) said, amid an overall challenging financial outlook for borrowers.
Nearly half a million households will spend more than 70 percent of their income, after tax, by the end of 2023. This constitutes a decrease from the previously estimated 650,000 households.
At the same time, the bank warned that increased living costs and higher interest rates are yet to be reflected in higher mortgage payments. This means stretched household finances for many borrowers.
Just under 900,000 households will face a payment increase by more than £500 a month owing to higher interest rates. The bank also estimated around 20 percent will see a jump of more than £1,000 per…
Read the full article here