With the implementation of the EPG and higher large proportion of U.K. mortgagers are on fixed interest rates, we expect the narrative of the rates, it will take time for this effect to feed U.K.’s “cost-of-living” crisis to shift away from through to the economy. That said, we estimate higher energy prices and toward higher mortgage that 35% to 45% of the total stock of U.K. interest payments. If the Bank Rate does reach mortgages will be repriced to newer rates over 4.5%, this would imply new mortgage rates of the course of 2023. This will further weaken the at least 5.5% for the average borrower—a near- outlook for the consumer and exert downward quadrupling of interest costs (Figure I-22). As a pressure on housing valuations. FIGURE I-22 New mortgage rates have moved in line with higher U.K. bond yields %    -year fixed mortgage rate   -year gilt yield    –      Note: Monthly data from January 31, 2000, to September 30, 2022. Source: Bloomberg, as of October 21, 2022. 28