Inter-generational impact of mortgage rate hikes

Another example of inter-generational inequality, with the latest research in the housing market revealing that younger homeowners are going to bear the brunt of the current rise in mortgage interest rates, and higher borrowing costs, rather than older homeowners who've had more opportunity to pay off a greater proportion of their mortgages when rates were lower.

Some analysts are forecasting that the implications of the rise in mortgage rates is going to have a more marked effect on the UK economy that the recent energy crisis. As mortgage interest rates rise, households are going to cut back on spending elsewhere, and this will have inevitable implications for economic growth.