First-time buyers hit hardest by interest rates
The recent hikes in interest rates have hit first-time buyers hardest, new evidence reveals.
The proportion of mortgages taken out by first-time buyers in January fell by 10% to 38%, according to mortgage broker Mortgages Direct.
The newly-found confidence displayed by first-time buyers in December dropped dramatically following the Bank of England’s decision to raise the Bank Rate by a further 0.25% in January – its third rise in six months.
Peter Gladdy, director of Mortgages Direct, said: “Although the property market is performing well, borrowers are showing signs of heightened sensitivity to changes in interest rates.
“Speculation of a further rate rise in the first half of the year is making buyers and property investors think very carefully before committing to purchasing a property.”