Chris Newman from the UK's leading 'sell and rent back' property firm, National Homebuyers says: "This will have a huge effect on people's lifestyles. With the property market slowing, fewer available purchasers and the increasing threat of debt, we predict this will be disastrous for thousands of homeowners already on the brink of desperation."
Vicky Redwood, UK Economist for global macro-economic analysis firm Capital Economics, believes that while the rate rise "isn't huge" by any means, it is enough to leave number of Britons in severe financial difficulty.
Coupled with increasing house prices, Ms Redwood suggests, the hike will leave first-time-buyers struggling to climb onto the first rung of the property ladder.
Meanwhile, the impact of higher mortgage interest repayments could leave many households struggling to pay their bills.
"In itself a quarter of a per cent isn't huge, but when you take it on top of the three rate rises we've already seen, and the fact that house prices have still been rising by ten per cent a year, it makes it even harder for first time buyers to buy their own house," Ms Redwood said.
Chris Newman concludes: "The significant difference for most many households will be the increase in mortgage interest payments.
"As people begin to realise that access to the funds locking in their home is their only solution, our sell and rent back product is receiving sizable increases in interest from home owners in financial distress. We will be happy to discuss or find a solution for anyone concerned about today's rise."
For further information on a quick house sale or to release equity in your home, please contact National Homebuyers on 0870 979 8118 or visit www.nationalhomebuyers.co.uk.
