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Third of homeowners 'fear interest rate rise'

Some 34% of homeowners are worried about what would happen to their finances if interest rates were raised from 0.5%, new research has revealed. The HomeOwners Alliance found some people would be forced to sell in interest rates rose.

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Rate rise 'could push millions into financial hardship'

A rise in interest rates could push millions of homeowners into real financial hardship, according to a property expert. Paula Higgins, chief executive of the HomeOwners Alliance, said:

Homeowners are already really struggling to make ends meet, and millions could be pushed into real financial hardship when interest rates start to rise.

It shows just how severe the cost of living crisis is that a rise in interest rates could lead to some homeowners struggling to afford food or being forced to sell their homes.

The Bank of England needs to tread very carefully to avoid causing widespread financial difficulties.

– Paula Higgins

Interest rate rise would 'hit young homeowners harder'

Younger homeowners would be hit hardest by a rise in interest rates, according to a study from the HomeOwners Alliance and conveyancing provider Myhomemove,

  • Nearly half of homeowners aged between 25 and 34-years-old said a rise in interest rates would put them in a tricky financial position.
  • Just under a quarter of those over the age of 55 said the rise would hurt them financially.

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34% of homeowners 'worried about interest rate hike'

Some 34% of homeowners are worried about what would happen to their finances if and when the Bank of England announces plans to raise interest rates, new research has revealed.

Homeowners in the east of the UK were most concerned about interest rate rise, the survey showed. Credit: PA

An estimated 5.8 million homeowners admitted they would struggle to afford mortgage payments or other bank loans and debts, research from the HomeOwners Alliance and conveyancing provider Myhomemove found.

On a regional basis, the survey of more than 2,500 people, of which around 1,600 own their property, found homeowners in the east of the UK were the most concerned about a rise in interest rates.

A total 47% of people there saying an increase would make life more difficult.

Read: Interest rates 'likely to remain low for some time'

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