Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
What it means
For a buyer, the question is whether the expected monthly mortgage payments leave enough money for other commitments and everyday needs. Payments depend on the amount borrowed, the interest rate and how long the loan lasts. A lender also looks at income and spending when deciding how much it will lend. A lower monthly payment can result from a longer mortgage, but that can mean paying more interest overall. Being offered a loan and feeling comfortable with its payments are personal decisions with different answers.
Example
Two buyers each borrow £180,000, but one has a higher interest rate. With the same loan length, the buyer with the higher rate will usually face a higher monthly payment, even though the loan sizes match.
Why it matters
A house price or income multiple alone misses the monthly cost of borrowing and the money a household needs for everything else.
Related terms
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Bank Rate
The main interest rate set by the Bank of England, which influences rates on borrowing and saving.
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Deposit to income ratio
A home-buying deposit compared with the buyer's or buyers' yearly income.
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House price to earnings ratio
A house price divided by a year's earnings, showing how many times annual pay the price represents.
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Housing affordability
Whether people can manage the cost of buying or renting a home.
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Housing cost burden
The share of a household's income spent on paying for its home.
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Loan to value ratio
A mortgage loan shown as a percentage of the home's value.
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Mortgage income multiple
The mortgage amount divided by the borrower's or borrowers' annual income.
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News
Highlights from about the UK economy, the UK government and the UK public sector.
Mortgage relief will have to wait a little longer
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
Energy bills are going up as winter approaches
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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