FX.co ★ UK Household Finances To Come Under Pressure In 2023: Bank Of England

The Bank of England has cautioned about the rising pressure on British household finances due to the increased cost of living and rising mortgage payments.

Pressure on UK household finances will increase over next year, the record of the Financial Policy Committee meetings held on November 28 and December 8 showed Tuesday. Around 4 million mortgage borrowers will be exposed to rate rises over the next year, the FPC observed.

Falling real incomes, increases in mortgage costs and higher unemployment will add notable pressure on household finances

Despite rising pressures, the FPC judged that households are more resilient now than in the run-up to the global financial crisis in 2007 and the recession in the early 1990s.