Mortgage repayments as a percentage of monthly equivalised disposable household income, throughout the house price and income distribution.

Housing affordability in the UK has worsened notably since 2020, with the share of income spent on mortgage payments rising for first-time and repeat buyers. In 2024, homebuyers spent, on average, 20.5 percent of their income on mortgage payments, up from 16.2 percent in 2020. First-time buyers spent a notably higher percentage than repeat buyers. One of the main factors for the declining affordability is the rising housing costs. House prices have increased rapidly since the COVID-19 pandemic. Mortgage rates have also soared since, leading to notably higher monthly payments.

The quarterly value of regular mortgage repayments in the United Kingdom (UK) has increased since 2012. In the third quarter of 2023, the value of mortgage repayments peaked at over 15 billion British pounds. This was an increase of about one billion British pounds higher than the same period in 2022. This figure includes all home purchase loans and remortgaging.

United Kingdom Mortgage Loans Repayment: MFIs data was reported at 16,736.000 GBP mn in Sep 2018. This records a decrease from the previous number of 18,280.000 GBP mn for Aug 2018. United Kingdom Mortgage Loans Repayment: MFIs data is updated monthly, averaging 12,456.500 GBP mn from Oct 1997 (Median) to Sep 2018, with 252 observations. The data reached an all-time high of 21,627.000 GBP mn in Oct 2007 and a record low of 3,412.000 GBP mn in Jan 1998. United Kingdom Mortgage Loans Repayment: MFIs data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB023: Mortgage Loans: Repayment.

Mortgage interest rates in the UK were on a downward trend for more than a decade before soaring in 2022. In the first quarter of 2025, the average weighted interest rate stood at **** percent — nearly ***** times the interest rate in the first quarter of 2022. Mortgage rates also vary depending on the type of mortgage: Historically, fixed rate mortgages with a shorter term had on average lower interest rates. What types of mortgages are there? In terms of the type of interest rate, mortgages can be fixed and variable. A fixed interest rate is simply a mortgage where the rate of repayment is fixed, while a variable rate depends on the lender’s underlying variable interest rate. Furthermore, mortgages could be for a house purchase or for refinancing. The vast majority of mortgages in the UK are fixed rate mortgages for house purchase, and only a small share is for remortgaging. How big is the UK mortgage market? The UK has the largest mortgage market in Europe, amounting to over ** billion euros in gross residential mortgage lending as of the fourth quarter of 2024. When comparing the total outstanding residential mortgage lending, the UK also ranks first with about *** trillion euros.

Mortgage rates surged at an unprecedented pace in 2022, with the average 10-year fixed rate doubling between March and December of that year. In response to mounting inflation, the Bank of England implemented a series of rate hikes, pushing borrowing costs steadily higher. By October 2025, the average 10-year fixed mortgage rate stood at **** percent. As financing becomes more expensive, housing demand has cooled, weighing on market sentiment and slowing house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold fell significantly in 2023, dipping to just above *** million transactions. This contraction in activity also dampened mortgage lending. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans declined year-on-year for five consecutive quarters. Even as rates eased modestly in 2024 and housing activity picked up slightly, volumes remained well below the highs recorded in 2021. How are higher mortgages impacting homebuyers? For homeowners, the impact is being felt most acutely as fixed-rate deals expire. Mortgage terms in the UK typically range from two to ten years, and many borrowers who locked in historically low rates are now facing significantly higher repayments when refinancing. By the end of 2026, an estimated five million homeowners will see their mortgage deals expire. Roughly two million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026, putting additional pressure on household budgets and constraining affordability across the market.

The total value of mortgage repayments in the United Kingdom (UK) picked up in the third quarter of 2023, after falling to one of the lowest values since the (COVID-19) pandemic. Secured loans on dwellings includes all home purchase loans and remortgaging. In the third quarter of 2023, the repayments of secured loans on dwellings in the UK reached a total value of nearly 59.5 billion British pounds.

United Kingdom Mortgage Loans Repayment: OS: Regular data was reported at 172.000 GBP mn in Sep 2018. This records a decrease from the previous number of 179.000 GBP mn for Aug 2018. United Kingdom Mortgage Loans Repayment: OS: Regular data is updated monthly, averaging 178.000 GBP mn from Jan 1999 (Median) to Sep 2018, with 237 observations. The data reached an all-time high of 622.000 GBP mn in Jan 2009 and a record low of 23.000 GBP mn in Jan 2001. United Kingdom Mortgage Loans Repayment: OS: Regular data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB023: Mortgage Loans: Repayment.

In 2022, the majority of mortgage holders in the UK had a fixed rate repayment schedule. The share of respondents who had a fixed-rate repayment schedule was ** percent, followed by ** percent on a repayment schedule with a variable rate. Interest only mortgages were the case for ** percent of respondents, with an even split between a variable and fixed rate.

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Due to interest rates decreasing in recent years, mortgages in the United Kingdom have become overall more affordable: In 2007, when mortgages were the least affordable, a home buyer spent on average **** percent of their income on mortgage interest and *** percent on capital repayment. In 2019, the year with the most affordable mortgages, mortgage interest accounted for *** percent and capital repayment was **** percent of their income. As interest rates increase in response to the rising inflation, mortgage affordability is expected to worsen. Though below the levels observed before 2007, the total mortgage repayment between 2022 and 2026 is expected to exceed ** percent of income.

United Kingdom Mortgage Loans Repayment: Other Lump Sum data was reported at 1,442.000 GBP mn in Sep 2018. This records a decrease from the previous number of 1,623.000 GBP mn for Aug 2018. United Kingdom Mortgage Loans Repayment: Other Lump Sum data is updated monthly, averaging 1,163.000 GBP mn from Jan 1999 (Median) to Sep 2018, with 237 observations. The data reached an all-time high of 1,809.000 GBP mn in Oct 2008 and a record low of 467.000 GBP mn in Jan 1999. United Kingdom Mortgage Loans Repayment: Other Lump Sum data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB023: Mortgage Loans: Repayment.

About 1.4 million households with mortgages up for renewal in the United Kingdom (UK) will face increasing monthly costs by the end of 2024 because of the aggressive mortgage interest hikes since the beginning of 2022. For about one million of these households, the increase will be between one British pound and 300 British pounds, while for 388,000 households, the increase will be higher. By December 2026, the number of households with rising mortgage payments is projected at 3.9 million. Meanwhile, about two million mortgage borrowers are expected to benefit from reduced mortgage payments by the end of 2026.

The mortgage term length on about ** percent of new mortgage lending in the UK was 30 to 35 years in September 2023. That includes first-time buyers, repeat buyers, and remortgages. Mortgages with a term of over 35 years were the least common. Nevertheless, they gained increased popularity between 2022 and 2023, rising from *** percent to **** percent of new lending. Longer terms imply lower monthly principal repayments. Nevertheless, they result in a higher interest payment over the life of the mortgage.

United Kingdom Mortgage Loans Repayment: OS: Other Lump Sum data was reported at 34.000 GBP mn in Oct 2018. This records an increase from the previous number of 30.000 GBP mn for Sep 2018. United Kingdom Mortgage Loans Repayment: OS: Other Lump Sum data is updated monthly, averaging 52.000 GBP mn from Jan 1999 (Median) to Oct 2018, with 238 observations. The data reached an all-time high of 202.000 GBP mn in Feb 2008 and a record low of 10.000 GBP mn in Feb 1999. United Kingdom Mortgage Loans Repayment: OS: Other Lump Sum data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB023: Mortgage Loans: Repayment.

Forecast of repayment thresholds for Plan 1, Plan 2 and Plan 3 student loans.

United Kingdom Mortgage Loans Repayment: Other Specialist Lenders (OS) data was reported at 1,563.000 GBP mn in Sep 2018. This records a decrease from the previous number of 1,592.000 GBP mn for Aug 2018. United Kingdom Mortgage Loans Repayment: Other Specialist Lenders (OS) data is updated monthly, averaging 1,585.000 GBP mn from Jan 1999 (Median) to Sep 2018, with 237 observations. The data reached an all-time high of 5,405.000 GBP mn in Feb 2008 and a record low of 327.000 GBP mn in Jan 2000. United Kingdom Mortgage Loans Repayment: Other Specialist Lenders (OS) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB023: Mortgage Loans: Repayment.