As a rate hike by the Bank of England will affect the property market in the UK

The Bank of England on 2 November must announce the increase in base rates. Company Yorkshire Building Society conducted a study on the impact of this decision on the mood of sellers and buyers of the market of real estate in the UK and found that the majority of market participants are not very excited about the upcoming promotion. According to a widely distributed forecasts, the Bank of England will raise rates from their historic low where it is now at 0.25% is also a very negligible amount of 0.25%.

On the one hand, this was the first increase that is going to go the Bank of England for 10 years. On the other hand, has grown a whole generation of homeowners and investors in an environment of low interest rates. Of course, for those who have contracted at fixed rates, do not worry further. Those who will enter into new contracts, it is possible to encounter small, it is a slight increase in your monthly financial burden. Deemed to increase the base rate by 0.25% would result in an average increase in monthly payments on the credit at £15 pounds, or £180 pounds a year.

The reaction of banks to the planned increase. Some lenders already refuse the lowest rates, by contrast, others use the situation to attract new customers and announced the reduction of rates, regardless of the predictions of the actions of the Bank of England.

The vast majority of first-time buyers a housing, said that the impending rate hike is unlikely to affect their decision to buy property in the short term, and only 8% of potential buyers said they might be forced to abandon their plans.

The study also showed that no Bank rate, and the ability to save up for a Deposit is a problem for 44% of potential buyers, and for 33% the price of property in England – the main problem preventing the purchase.

Meanwhile, many lenders say that over the past three months significantly increased the number of borrowers looking for loans at a fixed rate.

® Helen Entree. 02.11.2017 G.

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