Over 50% of homeowners state that the recent increase in interest rates has made them reluctant to consider moving up the property ladder.
Research conducted by eMoov suggests that 56% of homeowners aged 25 to 34 say that the Bank of England interest rate rise has put them off moving up the ladder. For 78% of those aged 25 to 34, the interest rate increase in November was their first rise. The survey also revealed that 46% would still consider another home move, despite the fact that it was the first increase in rates for 10 years. Around 13% of respondents had decided to put the decision to move home on hold for a short period.
More first-time homeowners had been put off buying another home due to the rise, with 40% deciding not to move for an indefinite period. More people in London had been deterred from moving up the ladder, possibly due to the higher house prices. When asked about the impact of the interest rate increase on their mortgage payments, 64% hadn’t noticed, while 3% said it had severely impacted on finances.
The age group to be most affected by the increase was those aged 45 to 50, with 5% saying that their finances had been severely affected. CeMAP qualified mortgage advisors can help buyers to apply for a fixed rate mortgage, which would provide some security for young home owners who would like to budget for expenditure.