‘Consumer confidence rocked by rate rise’

Managing director of SmartNewHomes.com David Bexon suggests many people across Britain are put off purchasing a new home due to the additional debt management problems that they could face in the wake of rising repayment rates.

And this apparent trepidation among potential homebuyers demonstrates the effects of November’s decision to raise interest rates and is behind January’s 0.3 per cent fall in the price of hew homes in Britain.

Mr Bexon said: The decision to increase rates in January came as a shock to many, sending waves through the market as many potential buyers reconsidered the implications of taking on the additional debt that would arise as a result of stepping up the housing ladder.”

A study from moneysupermarket.com revealed that as many as 13 million Brits have opted for debt consolidation
loans.

Heightened interest rates are making it more difficult for borrowers in the UK to ClearDebt they have accumulated.