Homeowners on a variable rate mortgage will be most affected by the Bank of England's monetary policy committee's (MPC's) decision to raise interest rates by 0.25 per cent, it has been claimed.
May 15, 2007 (Press Release) --
According to Lloyds TSB and UK property buyer National Homebuyers, those with large amounts of consumer debt will also be adversely impacted on as repayments on interest will be increased.
Trevor Williams, chief economist for Lloyds TSB corporate market says "The interest rate change will [affect] those with mortgages or those with large outstanding consumer debt, which is linked to base rates.
"But for those people with variable mortgage rates it means that immediate impact will come through as a result of the quarter point increase."
Mr Williams believes the housing market will play a crucial role in slowing the economy down and relieving the inflationary pressure which has forced the MPC a fourth rate hike in less than a year, as following increased mortgage repayments people will have less income at their disposal.
The UK's leading quick sale property organisation National Homebuyers has already expressed their concern that this could lead to a rise in the number of repossessions.
Julian King, Director of National Homebuyers says: "Increasing interest rates and poeple forced into a position of borrowing up to eight times their wage in order to purchase a property has led to many experiencing financial difficulties.
"Irresponsible lending is not regulated and as such, National Homebuyers is finding huge volumes of people experiencing the strain of their original variable rate mortgage arrangement. Homeowners who need to sell their home or find a way of releasing the equity in their property without moving should realise that we offer a quick and hassle free process that can solve many peoples' problems".
For further information on a quick house sale or to release equity in your home, please contact National Homebuyers on 0870 979 8118 or visit www.nationalhomebuyers.co.uk/sellandrentback.html.
Trevor Williams, chief economist for Lloyds TSB corporate market says "The interest rate change will [affect] those with mortgages or those with large outstanding consumer debt, which is linked to base rates.
"But for those people with variable mortgage rates it means that immediate impact will come through as a result of the quarter point increase."
Mr Williams believes the housing market will play a crucial role in slowing the economy down and relieving the inflationary pressure which has forced the MPC a fourth rate hike in less than a year, as following increased mortgage repayments people will have less income at their disposal.
The UK's leading quick sale property organisation National Homebuyers has already expressed their concern that this could lead to a rise in the number of repossessions.
Julian King, Director of National Homebuyers says: "Increasing interest rates and poeple forced into a position of borrowing up to eight times their wage in order to purchase a property has led to many experiencing financial difficulties.
"Irresponsible lending is not regulated and as such, National Homebuyers is finding huge volumes of people experiencing the strain of their original variable rate mortgage arrangement. Homeowners who need to sell their home or find a way of releasing the equity in their property without moving should realise that we offer a quick and hassle free process that can solve many peoples' problems".
For further information on a quick house sale or to release equity in your home, please contact National Homebuyers on 0870 979 8118 or visit www.nationalhomebuyers.co.uk/sellandrentback.html.
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