A national poll of active home movers across the UK showed that 61% of current UK property sellers have cited rising interest rates as a top motivator for deciding to put their home on the market now.
Mortgage borrowing rules have been eased after the Bank of England scrapped an affordability test. However, the changes may not be as significant as they sound.
Research from Halifax has revealed that housing affordability has been reduced to the lowest levels on record.
For the fifth consecutive time the Bank of England has chosen to increase interest rates – a rise from 1% to 1.25% – reaching a 13-year high.
It also looks like there will be more interest rate hikes coming in the near future, with some committee members voting for more a more aggressive hike of 0.5%.
With intense competition between lenders, mortgage product fees have been lowered across the board, this has coincided with a 34% rise in fee-free mortgage deals.
The typical first-time buyer must now put down an average deposit of £45,569, representing a 54% jump in comparison to first-time buyer deposits ten years