According to Zoopla, nearly two million homeowners will see their mortgage repayments go up, leaving new homeowners with uncertainty. That’s why in today’s blog post, we will be covering how the rise in mortgage will affect new homeowners.
This year, Zoopla and Rightmove reported a rapid rise in rent, first time buyer houses, and a spike in interest rates in most areas of the country, adding to the cost-of-living crisis.
What is the cost-of-living crisis?
The cost-of-living crisis in the United Kingdom affects everything such as food prices, used vehicles, fuel, electricity expenses, rent, mortgage, and more.
What caused the cost-of-living crisis?
It’s no surprise that as a country we have gone through a lot over the years – the pandemic, Brexit and recent war has caused economic pressures and uncertainty. Overtime, this has led to an increase in cost of living, making it hard for a lot of people to afford to live.
How does increased interest rates affect mortgage?
Payments on a variable-rate-mortgage will rise if interest rates rise. This is usually tracked by the base rate or loan.
What does this mean for new homeowners?
Due to an increase in cost of living, it means an increase in mortgage repayments and rent. Thus, making it harder for first time buyers to get onto the property ladder and keep up with payments. The cost-of-living crisis has left a lot of people being unable to meet necessities.
As the cost-of-living rises, new homeowners will need to find a means to reduce their mortgage payments monthly.
Before you go …
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