‘Healthy appetite’ for property despite interest rate rises

Uptake of property will remain strong over the course of 2007 despite the impact recent interest rate rises may have on secured loan repayments, it has been suggested.

According to research by Paragon Mortgages, about 70 per cent of financial advisers surveyed believe the four base rate rises that have taken place since August 2006 will have either a positive effect on business levels or no influence at all.

Managing director John Heron said: "Interest rate hikes may have cooled the housing market slightly, but there is still a healthy appetite for bricks and mortar."

He added that borrowers looking to get onto the property ladder may wish to consult a financial adviser "to ensure they get the best mortgage for their requirements".

Overall, brokers are expecting a rise of more than six per cent in business over the next 12 months - which could well indicate an increasing uptake of secured and Home Loans as Britons look to buy their first home.

Last week, Michael Coogan, director general for the Council of Mortgage Lenders, warned secured loan borrowers against "complacency" following the Bank of England’s decision to maintain the base rate at 5.5 per cent.

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