Borrowers with a variablerate mortgage and fixed payments may face higher payments if they hit their "trigger rate"-the rate at which their monthly mortgage payment is covering only the interest and not paying down the principal.
The Bank has done some work to estimate the share of households that have reached their trigger rates, which is available on our website.5 Homeowners with fixed-rate mortgages may also be looking at higher payments when they renew, depending on when they took out their mortgage and whether they have room to extend their amortization period.