Credit Strategy – Latest industry and credit sector news

Homeowners and renters in the UK are increasingly worried about rising interest rates, with the latter worrying about its effect on their prospects for buying their own homes.

Polling agency Opinium conducted a survey of over 2,000 UK adults on behalf of bridge lender Market Financial Solutions (MFS).

He revealed that rising interest rates, coupled with the threat of higher inflation, affect 28% of renters – who fear it will hurt their chances of home ownership.

Homeowners also expressed anxiety, with 19% worried that a higher base rate would affect their ability to pay their mortgage payments.

The Bank of England raised the key rate to 0.25% from 0.1% in December 2021, with a further hike to 0.5% in January.

MFS research found that 18% of UK adults plan to buy a home in 2022, with 14% of renters hoping to move up the property ladder.

But 66% of them said they were worried about inflation and rising house prices – which averaged above £260,000 for the first time in February 2022, according to the index Nationwide house prices.

Another 38% responded that the time and complexity involved in obtaining a mortgage is a major challenge.

Mortgage boom nets NatWest £4bn profit in 2021Next story Mortgage boom nets NatWest £4bn profit in 2021

Source link