There must be some figures somewhere about how many loans are coming out of honeymoon rates.
It could be a tiny percentage of the overall or it may be significant.
If the persons coming out of the honeymoon loan are owner-occupiers then they will feel the pinch. At the same time as their rate will rise they are also paying more for fuel, more for food etc.
There will be a percentage of distressed sellers, but how many are we actually talking about?
If the persons coming out of a honeymoon rate set three years ago then they will be somewhat balanced out by rent they are receiving today as opposed to three years ago. How much has that rental income risen over three years? Will it compensate for a 1 or 2% rise in rates?
I personally think that landlords will not feel the pinch as much as owner-occupiers especially since owner-occupiers who sell become renters and therefore add more pressure on the rental market.
