New survey suggests mortgage rate rise concern

By Natasha Adamson

Nearly half of would-be house purchasers are concerned about mortgage affordability according to new research by the Building Societies Association, and 27 per cent say that concern about a mortgage interest rate increase is their biggest obstacle to putting a foot on the property ladder.

It the increased cost of living and lack of movement on salaries that is creating the most concern among mortgage borrowers, though statistics show that only 17 per cent of monthly income goes out on mortgage payments compared to 27 per cent in the early 1990s. While the cost of living has certainly increased it is worth noting that the 'basic monthly costs' have expanded somewhat over the past five to ten years. Many people now consider their cable TV subscription, broadband internet bill, and mobile contract costs on a par with their electricity and grocery bills as part of the 'regular' monthly bills that are 'unavoidable'.

A generally improving economy means an increase in interest rates could come quicker than initially expected, but there are still very few who consider that it will happen anytime soon. The speculation has caused an increase in the uptake of fixed rate mortgage products, which currently account for nearly 70 per cent of all the mortgage products available.

If you are buying, selling or remortgaging a property in Northern Ireland contact one of the conveyancing solicitors at Wilson Nesbitt in Belfast by calling 0800 840 9290.