Mortgage Costs Set to Rise as Interest Rates Stay Higher for Longer
- Interest rates expected to stay higher for longer, settling around 4% by 2028-29
- Inflation to remain high, taking until 2025 to return to 2% target
- Mortgage rates forecast to peak at 5% in 2027, 0.8 pts higher than previous forecast
- Higher rates mean £1,092 extra per year for typical £200k mortgage
- Expert says unlikely rates will return to pre-pandemic lows long-term