In 2023, our AI-driven analytics revealed transformative trends, providing valuable perspectives on consumer behaviours and preferences. This report explores four pivotal highlights that shed light on the mortgage landscape, offering crucial insights for the market outlook in 2024.
Homeowners faced an anxiety-laden year in 2023, with the Bank of England’s benchmark Bank Rate peaking at 5.25% in August. Subsequently, mortgage rates increased to heights not seen in decades. The hikes meant that thousands of people across the UK suddenly saw monthly outgoings increase by hundreds of pounds. And it’s not over yet – the same will be true for many more customers whose products expire in 2024. According to the latest Financial Stability Report, approximately 900,000 borrowers will see their monthly mortgage repayments increase by around £500 before 2025, and some may even see an increase of more than £1,000.
