Expectations for an interest rate rise may have eased over recent months, but that could change as the US prepares for an increase. As a result, mortgage experts in the financial press are beginning to look at what it will mean for borrowers when rates do start to edge up. The Sunday Times revealed that nearly 2 million people in the UK have never witnessed an increase in the Bank of England Base Rate, and brokers urged homeowners to calculate how much their monthly payments will go up if the cost of rates rises by 1%, 2% and so on.
In the Buy to Let area of the market, there was news that some landlords have begun to sell off their properties, in the face of increasing tax liabilities and the potential for interest rates to rise in the future. The Sunday Telegraph sought to answer some of the questions regarding the introduction of stamp duty and the impact this might have on those in the process of buying at the moment, as well as parents looking to buy in joint names with their children. The article did point out that more detail will be made available following further consultation.
Elsewhere, the Financial Times reported on the new London version of the Help to Buy scheme, which allows First Time Buyers and homebuyers with a 5% deposit to secure an equity loan worth an additional 40% - double the amount offered under the scheme currently in place for the rest of the country. Commentators welcomed the scheme, but felt that property prices in the capital would still make raising the 5% deposit difficult.
What the papers said about interest rates