Rates of interest rise – MoneyMagpie

CEO of Octane Capital, Jonathan Samuels, commented:

“As of yet, the Bank of England’s attempts to curb inflation haven’t quite gone to plan and so today’s increase was to be expected. 

While a half a percent jump could appear substantial, it should help the Bank of England regain a grip over the situation at hand, as currently, it trails the Federal Reserve and wishes to catch up if we wish to see inflation fall prefer it has in the US. 

So all things considered, today’s increase might be appropriate, although this isn’t the news the nation’s borrowers were hoping for.”

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:

“Thus far the UK property market has weathered the storm of twelve consecutive rate of interest hikes and while we’ve seen marginal signs of house price depreciation, there’s nothing to suggest a thirteenth increase will bring the partitions crashing down around us. 

It’s also essential to notice that a 3rd of homebuyers now own their house outright and in order that they aren’t feeling the strain of increased borrowing costs. 

That said, any base rate increase is certain to be passed on by lenders to the nation’s homebuyers and that is prone to mean higher borrowing costs and fewer available mortgage products. It will inevitably have an effect on buyer purchasing power and, consequently, we are able to expect to see more protracted transaction timelines and an additional cooling in property values because the market continues to search out its feet.”

Managing Director of Sirius Property Finance, Nicholas Christofi, commented: 

“Rates of interest are actually at their highest in over 15 years, however it’s not only the upper cost of borrowing that can be weighing on the minds of UK homebuyers, it’s the consistency at which rates are climbing. 

Many buyers are finding that, having agreed a mortgage in principle, the goal posts have already moved by the point they find their ideal home they usually’re having to return to the drafting board to reassess just what they will afford to borrow.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“It definitely seems as if the Bank of England has lost its grip on inflation and in order that they’ve continued to pile more misery onto borrowers with yet one more rate increase. 

It will do nothing to revitalise what has grow to be a moderately weary looking property market in recent months and is certain to dampen buyer demand as lenders pass on this increase in the shape of upper mortgage rates.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“The market stays in fairly good form considering rates of interest are at their highest since 2008 and we expect this can now bring a couple of reversal in market fortunes. 

The more inflated areas of the market, comparable to London, largely trailed their more cost-effective counterparts where pandemic house price growth is worried.

Nevertheless, buyers in these regions are higher placed to soak up higher borrowing costs and so we expect the likes of the London market to stay largely unfazed going forward.

In consequence, we expect stronger market performances to materialise in comparison with among the other more cost-effective areas of the market.”