JustUs increases interest rates after BoE decision

JustUs has increased its interest rates by 0.5 per cent for borrowers and investors, following the Bank of England’s latest base rate hike.

The peer-to-peer property lending platform said that the higher rate will come into effect on new loans from today.

Yesterday, the central bank increased the base rate from 4.5 per cent to five per cent.

“Whilst this inflation driven rate rise will continue to put pressure on household budgets and considerably dampen the first-time buyer market across the UK, the developments on the platform are in highly desirable Cheshire locations in the North West which are less exposed from an affordability perspective, than higher cost properties in the South,” JustUs said.

Read more: EstateGuru chief warns pressure for higher rates can boost defaults

“JustUs have always had low and prudent loan to values to address the risks of volatile house prices.”

JustUs said that feedback received from its property agents is that many families purchasing JustUs-funded homes have accumulated considerable equity or are downsizing cash buyers.

“Demand is still strong due to the chronic housing shortage and sales are expected to continue,” it said.

JustUs last increased its rates in February, raising them by 0.5 per cent and one per cent for investors and borrowers respectively.