A FURTHER interest rate will make things “impossible” for many homeowners, one of the country’s leading property associations warns today.
The Bank of England is tomorrow expected to hike rates again in a bid to combat inflation which the Government isn’t currently able to bring down as quickly as it wants to.
But the National Association of Property Buyers said the “inevitable” increase will create a tipping point for many across the UK.
Spokesman Jonathan Rolande warned: “It is looking highly likely that the Bank of England base rate will increase this week by at least a quarter of a percent and given the very disappointing news on inflation today, quite possibly by more.
“This is bad news for those hoping to buy a home or remortgage an existing one, some 800,000 people are expected to be in this position during the next year. It is now obvious why banks have been busy pulling mortgage deals in recent weeks, the writing was on the wall – mortgages are about to become a lot more expensive and there will not be any respite in the near future.
“Things are made worse for millions of borrowers because the property market was so busy in 2018 and 2021, just pre and post-Covid. Most took a two or five-year fixed rate and have been insulated from previous rises. This comfort will soon come to an end, at a time when other costs – food, fuel and more – have rocketed.
“In the world of property, things are rarely certain but today one thing is: it’s about to get very difficult for millions of hard-pressed homeowners and sadly impossible for many to afford. We are now at a tipping point and for hundreds of thousands of people across the UK it is going to be tough for them to continue affording the properties they are in while for those looking to enter the market it will become even more difficult.”
