Advertisement
SKIP ADVERTISEMENT
Supported by
SKIP ADVERTISEMENT
Why Britain’s Mortgage Holders Are Being Squeezed
The Bank of England’s campaign to curb inflation is pushing up monthly payments for millions of homeowners.
Every six weeks, at noon on Thursday, mortgage holders in Britain brace for more bad news. It’s the moment the latest Bank of England decision on interest rates is announced.
For a year and a half, the central bank has lifted interest rates at every meeting as policymakers have tried to stamp out high inflation. With each increase, millions of Britons prepare to put more of their money toward their monthly home loan payments and pull back on other spending.
A decade of low interest rates, followed by a rapid surge in rates, has upended budgets all over the country. Alarm is rising among the households affected, charities stretched thin and politicians heading into an election next year.
according to the Institute for Fiscal Studies. The burden will fall harder on those younger than 40, the research organization said.
Eshe Nelson is a reporter in London, where she writes about companies, the British economy and finance. More about Eshe Nelson