Comparison site Finder, which conducted the survey, also found that around 145,000 home owners who wereAround 19 per cent of home owners would struggle to meet their mortgage repayments if their home loan rates were to rise by 3 percentage points, according to Finder.“If home owners paying 3 per cent now were asked to pay 6 per cent, there’d be quite a few looking to sell,” said Richard Whitten, home loans expert at Finder.
“But it’s important to note that it’s not just home loan repayments rising, the cost of living is increasing across most spending categories. So even borrowers who may have been conservative with their mortgages are probably still reeling from all the other rising costs in their lives.” “Investors have the luxury of being able to sell their investments or simply pass the cost onto their tenants in the form of higher rents when the existing lease expires,” Mr Whitten said.“It is home owners, especially recent buyers, who will struggle the most. And in this category it is borrowers with small deposits who have stretched their budgets the most, who are going to be worst hit by rising rates.
“We could start to see a significant increase in mortgage stress, which will then feed through into distressed sales activity. While“They’re not at critical levels yet, but if interest rates continue to rise at this rate, we could see a sharp jump in distressed listings.” But selling in a downturn would be an added challenge for distressed home owners, said Mr Christopher.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »