Housing market recovery could wobble
Any recovery the housing market was about to undergo could be undermined by increasing rates on home loans, it has been claimed.
Fixed-rate deals could become more expensive, with a number of firms shifting up their prices over the next few days, predicted Ray Boulger, spokesman for mortgage lender John Charcol.
He explained the recent stir in activity has been brought about by increases in affordability and a fall in house prices and interest rates.
"If interest rates continue to rise then the current recovery in the housing market may well wobble," Mr Boulger predicted.
The spokesperson explained that John Charcol, like other lenders, has around four-fifths (80 per cent) of its customers on fixed-rate deals.
If moving home becomes more expensive, some may opt to invest in a home improvement such as a loft conversion after hearing Nationwide say a ten per cent increase in floor space could give the value of a home a seven per cent boost.