{
  "id": 17951623,
  "title": "Mortgage squeeze looms for millions as more families ‘financially strained’",
  "url": "https://urgent.news/2026/11/03/mortgage-squeeze-looms-for-millions-as-more-families-financially",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T11:06:22.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/mortgage-squeeze-looms-for-millions-as-more-families-financially-strained/"
  },
  "original_language": "en",
  "account": "Recent polling has revealed that an increasing number of British households are facing financial strain, with more than half fearing a significant rise in their mortgage payments. According to new City AM/Freshwater Strategy polling, half of all mortgage holders expect to switch out of fixed-rate deals by the end of 2028, leaving them vulnerable to higher repayments. Nearly one in three people surveyed (29 per cent) lack confidence in their ability to afford the increased costs, while more than half (53 per cent) anticipate a substantial hike in their mortgage bills. This data arrives on the heels of an expected interest rate increase by the Bank of England to 4 per cent on Thursday, the first such rise since August 2023. The Bank's Monetary Policy Committee had been steadily reducing interest rates from a peak of 5.25 per cent, but could once again tighten monetary policy in response to surging energy prices spurred by the Iran conflict.\n\nIndustry body UK Finance predicts that the impact of an interest rate hike will affect 2.3 million households that reach the end of their fixed-rate deals in 2027, many of which were secured when rates were as low as 1 per cent. Most banking groups anticipate interest rates to rise on Thursday. While some lenders are competing to offer more favorable terms as rates climb, economists at a government watchdog expect the effective interest rate on outstanding mortgages to climb from around 4 per cent this year to 5 per cent by 2031. This surge will occur as borrowers transition from fixed-rate mortgages that benefited from lower rates to new ones with higher rates. In July, the Bank of England projected that around 5 million households would see their repayments rise by year-end 2028, a higher estimate than previously anticipated prior to the Iran war.\n\nFor the average homeowner transitioning from a fixed-rate mortgage in the next two years, mortgage payments are projected to be £45 higher than previously expected. If the Bank opts to raise interest rates further and adopts a more conservative approach to monetary policy, this difference could grow. Such a rise in mortgage costs could exacerbate the financial pressures already faced by many families, as inflation persists and fuel prices remain elevated. Recent City AM/Freshwater Strategy polling indicates that financial strain is at its highest level since tracking began in early 2025, with two in five voters cutting discretionary spending or struggling to pay essential bills. Another 10 per cent of respondents indicated they were \"troubled\" and resorting to debt to cover their bills.",
  "summary": "More people are feeling a financial strain than at any other time in the last two years, polling has shown, with a rise in mortgage bills set to put household budgets under greater pressure. New City AM/Freshwater Strategy polling has suggested that half of mortgage holders will come off fixed-rate deals by the end of [...]",
  "key_points": [
    "Half of mortgage holders expect to switch out of fixed-rate deals by end of 2028.",
    "2.3 million households affected by interest rate hike in 2027, many with rates as low as 1%."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}