Expected Mortgage Cost Lower for Some Amid Challenging Financial Outlook

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.

A general view of the Bank of England in London on Sept. 21, 2023. Aaron Chown/PA Wire

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.