Property expert's reason for homeowners to remain 'optimistic' after interest rate freeze

manchestereveningnews.co.uk:

Many mortgage holders that are due to renew later this year will be frustrated with the news that the Bank of England has decided to hold interest rates at 5.25 per cent for another month, as the UK continues to battle the high inflation that has pushed up everyone's cost of living.

But there is some good news. While the current rate of interest set by the central bank is at a 16-year high, those with a foot on the property ladder do have a reason to remain "optimistic", despite many seeing their mortgage repayments increase by hundreds of pounds a month.

You might be paying more, but the housing market, along with the value of your house, has remained resilient. In response to the Bank of England's announcement on interest rates, Nathan Emerson, CEO of Propertymark, said: “As interest rates continue to remain the same in order to combat levels of inflation this country has not witnessed for decades, Propertymark is optimistic that buyers will continue to adapt to these new market conditions." READ MORE: Martin Lewis explains how to turn £800 into £5,400 or more He went on to say: "Our own Housing Insight Report discovered that there has been a 4 per cent increase in the number of potential buyers registered, and an 8 per cent increase in the number of available properties to rent, which shows that there are some reasons to remain optimistic that the housing market is recovering from shock economic factors from the last three years.” However, the interest rate freeze could still prove difficult for some.

One such group is all mortgage holders on a fixed-rate deal that will be renewed in the coming months, as they are likely to see higher monthly repayments as they lock-in a higher mortgage rate.