Many thousands at risk should interest rates rise
Many thousands of mortgage holders in the south of England could be hit ‘incredibly hard’ should interest rates rise this year, according to data released by estate agent Savills.
Those with mortgages in Dagenham, Tower Hamlets, Harlow, Worcester, Watford and Slough would be ‘most exposed’ should interest rates increase. Research has decreed that scores of home owners in these areas have financially overstretched themselves compared to their income, and could face significant fiscal hardship in the event that rates rise.
The study assessed loan to value and loan to income ratios across the country to ascertain the areas most at risk, and found that though some areas in the north of England, such as Harrogate and Boston, could face potential financial jeopardy, it is predominantly districts just outside the capital that are in the most perilous state.
We spoke to Michelle Lawson, director at Lawson Financial Ltd in Fareham, Hampshire, who said: “With constantly evolving changes to lender criteria and the mortgage market, customers need to be sure they get the right product. A mortgage is likely to be your biggest expense, and the only way to ensure you are choosing the correct option is to take professional advice. That way, your mortgage will meet your goals and needs both now and in the future.
“As an experienced advisor dealing with the whole of the market I can advise clients how to meet their financial goals, and can assist them in analysing and fully assessing their financial situation.”
We also spoke to Justin Whitelock, an IFA working at Asset-Cap Ltd in Bishopsgate, London, who said: “When planning your mortgage needs, you should look to include bringing future needs into the present day in order for you to be able to act upon them now.”
If you are looking to buy a property and have concerns about picking the best mortgage to suit your circumstance, seeking advice from an IFA could help. To find an IFA in your area, search the VouchedFor database.