The first interest rates rise in over a decade is “unlikely” to have a major effect here in Liverpool according to a local law firm.
The Bank of England announced yesterday (2 November) that the official bank rate has been lifted from 0.25% to 0.5%, the first rise since July 2007.
The 0.25% increase reverses the cut in August 2016, which was made following the vote to leave the EU.
Thousands of homeowners here in Liverpool, those on standard variable rate or a tracker rate, will now face higher mortgage interest payments but John-Paul Dennis, partner at Kirwans law firm, doesn’t expect to see a major impact on the Liverpool property market at large.
John-Paul says: “Mortgage companies will immediately review their products and prices will gently increase, but a rate rise has been expected for so long that it’s unlikely to have a massive or immediate effect.
“Interestingly, such increases can sometimes invigorate the market by causing a minor stampede, although that’s unlikely to be the case in the current climate.”