Impact of the mortgage interest rate hikes in the UK

The increase in mortgage interest rates has a wide-reaching impact on the UK housing market, including prospective buyers, owners, landlords, and even renters. The hikes were a response to inflation that started to rise in the first half of 2021 and hit 11 percent in October 2022. To tame inflation, the Bank of England increased the bank lending rate, causing the average interest rate for new mortgages to soar.
This report examines the impact of mortgage interest hikes on first-time buyers, homeowners with mortgages up for renewal, and buy-to-let landlords. Some of the themes discussed include affordability and sentiment among first-time buyers, rising monthly payments, their effects on household finances, buy-to-let landlords' response to the hikes, and the shift to limited companies.