Areas of the country at risk if Interest Rates Rise.

February 17, 2016

Interest rate rises, well we have been speaking about this now for years or what now seems decades and we are yet to see them as the government knows the real risk to the country as a whole when they do in fact have to raise them. Locations across the country do vary in regards to levels of debt, loan to income ratios etc.

A recent article in the Telegraph by  highlights the ten most vulnerable places to rate rises with Newham being placed first along with Barking & Dagenham and Harlow in the top ten.

Higher mortgage rates is probably something which for many they have forgotten about as they have lived off the back of low interest rates, a rocketing high price situation and temptation to the likes of re-mortgaging to release cash etc… All pointing to a huge problem if interest rates rise.

Many new to the property marketing will of course also be vulnerable as they will have likely paid the most for their property so if we see a drop in property prices they will also face negative equity, this combination being quite the most serious of positions to be in. Older population, especially those out in rural locations may well be least effected as they will be seeing out the last few years of their mortgages and house prices will have risen sufficiently high enough to make most interest rate rises and property price falls unlikely to effect them, hence the likes of North Norfolk and West Somerset are in the top ten of the least exposed local authorities.

Map showing average loan to value ratios from Savills:
Map showing average loan to income ratios from Savills:

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

Mortgage Borrowing Dip

Key points: Net borrowing of mortgage debt by individuals decreased to £3.9 billion in September, from £4.2 billion in August, below the previous 6-month average of £4.9 billion. Net mortgage approvals for house purchases decreased to 53,400 in September, below an average of around 58,800 over the previous 6-months. Approvals for remortgaging increased to 42,600…
Read More →
Breaking News

Autumn Budget 2026: Property industry reaction

Following today’s Autumn Budget, reaction from property industry experts on six key areas for the property market. First-time buyer support: The £4.7bn Your First Home equity loan scheme, supporting 70,000 buyers, alongside the introduction of a new First Time Buyer ISA. Inflation and borrowing costs: The extension of the fuel duty freeze, household energy support…
Read More →
Breaking News

Can you legally BAN Halloween Trick or Treaters?

People who dread the annual knock of trick-or-treaters may have more power to keep Halloween callers away than they realise. As millions of children prepare to take to the streets on October 31, a property law expert has explained what homeowners can do if they do not want strangers walking up their path or knocking…
Read More →
Estate Agent Talk

What the sector need to do differently to give first time buyers a chance

By Peter Hawley, Director, SOWN (part of LRG) The mortgage and property sector needs to stop assuming that younger buyers are either ready to buy outright or not ready at all. For many, the reality is somewhere in between. They may have stable employment, a deposit and a strong desire to own, but still find…
Read More →
Letting Agent Talk

The 50-property tipping point: when landlords need a different approach

By Adam Hills, Client Services Director, LRG Living Markets A sizeable residential property portfolio can create significant opportunities for long-term income and capital growth. But as it expands, so does the complexity of managing it effectively. For landlords with 50 or more properties, the challenge extends well beyond finding tenants or collecting rent to communication,…
Read More →
Estate Agent Talk

Home is where the stress is

Couples find first-time buying more anxiety-inducing than buying solo First-time buying: Anxiety doubles when finding a home with your partner! Stress and anxiety significantly increase when buying a first home with your partner compared to flying solo The likes of searching for a property, applying for mortgages and progressing through the legalities are all significantly…
Read More →