MHO discusses impact of interest rate rise on mortgage applicants

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MHO discusses impact of interest rate rise on mortgage applicants

Mon 21st Mar 2011

A source from the Metropolitan Housing Ownership (MHO) has suggested there will be positive and negative consequences for the mortgage market if interest rates were to rise.

Head of marketing at the affordable housing organisation Jim Munson pointed out that such a change would naturally increase the price of products.

He noted that the cost of living is already on the up and an interest rate hike would compound this trend, as well as potentially affecting consumer confidence.

But Mr Munson noted that such a change could also bring down house prices, which would benefit those at the bottom of the housing ladder.

In his view, there are encouraging signs present in the industry for this type of consumer.

"There are signs that the mortgage market for first-time buyers looking at intermediate housing market products is improving," the MHO representative remarked.

Mr Munson made his comments after the launch of the Lloyds TSB Lend a Hand product, which allows people to borrow with a deposit of five per cent.

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