Interest rates: 'Lost the plot!' BoE told it has made 'an enormous error' with hike

Karthik Srivats, co-founder of mortgage lender Ahauz, which provides equity loans to first-time buyers, said: “After years of rock bottom rates, the tide has now turned and no group is going to suffer a greater squeeze on affordability than first-time buyers.

“Today’s announcement from the Bank of England comes at a time when young people already face a perfect storm of record house prices, soaring energy bills, and increased taxes.

“While some predict that higher interest rates could trigger a slide in house prices, that may well turn out to be wishful thinking.

“Equally likely is that we see property prices climb further as demand continues to outstrip supply.

“That means first-time buyers will end up stretched on all fronts.

“With speculation already rife that today’s hike may be the first of many, the current level of enquiries from borrowers looking for a long-term fixed deal could soon turn into a flood.

“We are already seeing demand for equity loans increase as borrowers look for new ways to increase their affordability and drive down overall borrowing costs.”

source: express.co.uk