Interest rate rise deterring young homeowners

Interest rate rise deterring young homeowners

Many young homeowners are being put off moving up the property ladder because of concerns over future interest rate rises.

eMoov found 56 per cent of those aged 25 to 34 are worried about the financial impact of making monthly mortgage payments.

The recent decision by the Bank of England has seen the base rate of interest rise from 0.25 per cent to 0.5 per cent - the first increase in a decade.

However, a number of property owners have not been deterred by making a purchase, although 60 per cent of London owners said they do not plan to move in the future.

Russell Quirk, chief executive officer of eMoov, explained there are some young property owners who have fears about the interest rate hikes, but he added the “majority have weathered the financial implications and the marginal hike has made it easy enough to do so”.