The research from specialist lender, Market Financial Solutions, also found that 19% of homeowners are worried that further increases to interest rates will cause issues to their ability to make mortgage payments.
The Bank of England increased the base rate from 0.1% to 0.25% in December 2021, before introducing a further hike to 0.5% in January this year.
MFS’s research showed that 18% of UK adults intend to buy a property in 2022. Among renters, 14% plan to buy their first home. Among existing homeowners, 14% plan to sell up and move home in 2022, while 6% hope to purchase an additional investment property.
Of those planning to buy a property this year, two thirds (66%) said they are worried about inflation and rising house prices, which they say will hinder their chances to buy. Meanwhile, 38% stated that the time and complexity involved in securing a mortgage is a major challenge when looking to buy a property.
Paresh Raja, CEO of MFS, (pictured) said: “The dual-threat of rising inflation and rising interest rates will, naturally, have serious ramifications on those looking to get onto or move up the property ladder. As the cost of borrowing increases, homebuyers will need to consider the budgets carefully and assess their options.
“Mortgage brokers will continue to play an important role in vetting viable options for homebuyers. But it is important that any buyers – from first-timers to seasoned investors – weigh up their options, particularly with many citing mortgage delays and complications as major issues in the process. Seeking out the right financial product is important, but finding the right lender who can support their needs and act quickly is vital.
