First-time buyers could need advice following rate rise

Online mortgage company mform has said that four interest rate rises in the past year has forced a number of first-time buyers to take on 100 per cent mortgages and therefore a considerable amount of debt.

“There have been four increases in the Bank of England base rate in the past 12 months and this has hit many homeowners hard,” said Eamonn Rice, mform chief executive.

Mr Rice said that this has led to homebuyers having to use “all or most of their savings for a deposit”, meaning debt management could become an issue when the mortgage repayments begin.

Research by the company revealed that some 2.07 million homeowners between the ages of 18 and 34 have struggled to meet their repayments since the last rate rise.

The MPC will make its decision regarding the interest rate on Thursday.