The Bank found that about one third of mortgage holders in the UK, more than three million, are still paying rates of less than 3%.
These will mostly be people who arranged mortgage deals before the Bank of England started to increase interest rates in late 2021.
These mortgages are now expiring, and the Bank said the majority of fixed rate deals will finish before end of 2026.
For the typical household, monthly mortgage repayments are forecast to increase by around £180, or around 28%.
However, for around 400,000 households, monthly payments could jump by 50% or more.
Despite this, the amount of people struggling to pay their mortgage is still expected to stay below levels seen after the 2008 global financial crisis.
“The overall share of households who are behind in paying their mortgages remains low by historical standards,” the Bank says.
The report comes after three major lenders began reducing mortgage rates following hints of a summer interest rate cut by the Bank of England.
This week, HSBC, NatWest and Barclays have all cut the cost of fixed-rate home loans for new deals.
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