Areas of the country at risk if Interest Rates Rise.
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 Isabelle Fraser 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.
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