Expected Mortgage Cost Lower for Some Amid Challenging Financial Outlook

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. The slight drop comes amid growth in household income since July. The figures were published in a report by the bank’s Financial Policy Committee (FPC) that reviews the stability of the UK financial system. 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....