Survey: Rate rises have 'major impact on first-time buyers'

Almost half of first time buyers claim that their lifestyle has been impacted by recent interest rate rises according to a survey conducted by Millward Brown IMS on behalf of EBS Building Society.

When asked about how they will react to widely anticipated additional interest rate increases, 42% of first time buyers said that they would shop around for a better value mortgage provider.

One in four first time buyers plan to change their lifestyle to manage the change and a similar number, 27%, plan to move to a fixed rate mortgage.

The survey also found that 33% of first time buyers had taken out 100% mortgages - an increase of 15% over those surveyed last year.

Of those who did take out full value mortgages, 56% said that they were concerned at having to borrow the full value of their home.

Those who had taken out 100% mortgages were also the most concerned at recent changes in overall market dynamics.