Following the base rate rise to 5.25per cent, first time buyers could be feeling the pinch and possibly face repossession if they fail to keep up with mortgage repayments. However, The Royal Institution of Chartered Surveyors feel that those with mortgages in the buy-to-let market will not be effected as much and will keep paying the mortgage payments.
These fears come as a result of the council of mortgage lenders publishing the figures for 2006 for arrears and repossessions. Experts believe that as a result of the interest rate increase, the affordability condition in some first time buyers mortgages will come into force and some could find the mortgage company at their door.
Our view
It will always be those who have borrowed a lot to get on the property ladder or those who are trying to get on the ladder who are hard it. This is not ‘new’ news.