Increases in interest rates are the single most significant factor in deteriorating mortgage affordability in the UK, Fitch Ratings says. The agency estimates that mortgage affordability, measured as the proportion of household net income spent on monthly mortgage payments, will deteriorate in 2023 to its weakest level since the 2008 global financial crisis. Lengthening loan terms, which have helped borrowers limit monthly payments in recent years, will not be able to compensate for the significant increases in interest rates as lenders will not be willing to extend loan terms beyond the borrower’s retirement age. In ... (full story)