The trade body’s property tracker research revealed a rising number of people – 29 per cent, up from 27 per cent in December – were worried about potentially higher rates ahead of the MMR.
According to the 3-page report, 14 per cent of homeowners said they would struggle with their mortgage repayments if the base rate rose by one percentage point, although 42 per cent said they would not be affected.
Meanwhile, 63 per cent of respondents said fears over rising deposits, which are at their highest for two years, were their biggest barrier to purchasing a property. This was despite 40 per cent saying now is the best time to buy a property.
Paul Broadhead, head of mortgage policy at the BSA, said MMR would not make loans inaccessible, but he admitted it was worrying that consumers had these fears.
He said: “There are a number of reasons why the perceived challenges to buying a property have risen.
“First, the new lending rules will be introduced soon, and some lenders have begun to implement these rules. Borrowers should not be put off by the new regime.”
Jeremy Duncombe, director of the Legal & General Mortgage Club, advised prospective homebuyers to clean up their credit scores and carefully assess what is affordable.
Lender view
Sarah Howe, chief marketing officer at Saffron Building Society, said: “We have simplified our process by introducing a single application form, which will cover all mortgage types. We have developed a new, easy-to-use online affordability calculator, which will show brokers and their clients how much we are willing to lend.”
Adviser view
Ron Howard, partner at Essex-based Ingard Financial, said: “With MMR coming in, the new affordability models may make things a bit tighter.”
