Millions in UK brace to remortgage on worse deals as rate rise looms

More than 2.3m households face jump in payments in 2027, after expected increase in Bank of England rate this week

More than 2.3m UK households face a sharp rise in mortgage payments as they come off fixed-rate deals in 2027, with the Bank of England expected to begin raising interest rates this week.

The Bank’s nine-member monetary policy committee (MPC) is widely expected to increase the base rate from 3.75% to 4% on 5 November after UK inflation rose further to 3.5% in September.

It could be the first of four quarter-point rises over the next 12 months, according to financial market expectations, which would exacerbate the financial pressure on households grappling with higher energy and food bills.