The OBR Forecasts 0.75% Average Annual Growth in Real Household Disposable Income in 2026–2030. Dawn’s Mortgage Could Add About £250 a Month.
As Chancellor John Healey puts the final touches to his first Budget, the Office for Budget Responsibility predicts real household disposable income will increase by an average of 0.75% a year between 2026 and 2030.
Dawn Fazackerley-King is trying to work out how she and her family will pay higher mortgage costs anticipated in a few months. The interest rate on their Ipswich home loan could rise from 1.4% to about 5.3%, which she says could add about £250 extra a month just for living in the same property.
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The 0.75% figure is an average annual rate between 2026 and 2030; averages are a useful summary, not a schedule for any one household.
Dawn’s possible mortgage increase is exactly the kind of sharp step an annual average can hide: the rate could rise from 1.4% to about 5.3%, adding about £250 a month in her estimate.