Bank of England Interest Rate Rises Will Hit Mortgage Borrowers

According to a recent report in the Guardian, a rise in interest rates could potentially cost UK mortgage borrowers an average of £930 per annum.

Savills estate agency has estimated that a 1% rise in interest rates could rock family finances by close to a thousand pounds a year on average, with mortgage borrowers in the South of England, in such areas like Kent and Sussex suffering more than those in the north in such areas like Grimsby and Peterlee and other parts of the UK as they typically have higher value homes with larger mortgages.

Interest Rate Rises Imminent

The Bank of England is proposing a move from the current 0.25% base rate of interest to 0.5% before May to keep up with rising inflation. Investment experts are advising those with variable rate mortgages to shop around and quickly try to secure a better mortgage deal before further rises are announced.

The Governor of the Bank of England, Mark Carney, has eluded to further interest rate increases along the line, although he has assured the British public that they will be staggered and limited.

While the news of interest rate rises will be well received by savers and investors, many people with mortgages may begin to feel the pinch on their monthly finances, particularly those who have one or more Buy-to-Let mortgages who are unable to raise rents to cover the costs.

Interest Rate Rises May Impact Property Markets

The move may begin to affect the property market if more home owners choose to put their properties up for sale. There could be a dramatic increase in people who want to sell their house fast before any further interest rate increases affect them. Property buying companies may offer a solution to those who are not in a position to sell their house via an estate agent, particularly if they live in an area where property is fairly slow moving due to a depressed market.

 

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Selling your house for cash can help to overcome many of the obstacles of a long, drawn-out selling process, including not having to open up your home to potential buyers and needing to make costly repairs or renovations to improve the condition of your property to make it more appealing to buyers. A fast house sale could mean that people can either free up equity in their homes or secure a better deal on a mortgage for their next home before interest rates increase more.

Sell Your Home for Cash

Buyingpropertyfast.com specialises in helping those who need a fast house sale, offering a service which allows property owners to quickly sell their house at a fair rate with as little stress as possible.

Whether it is due to increasing mortgage repayments or simply need a fast house sale, whatever the reason for needing to sell your property fast, an approved property buyer that buys houses for cash may be able to offer a solution where you can quickly sell your home and release the money tied up in the property.

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