0.25% interest rate rise won't hit lending
Recent rises in interest rates will not affect lending, according to agents.
Interest rates rose last week to 5% - the highest for five years.
The Bank of England upped rates by a quarter-point - to control inflation as it seeks to curb price increases.
In August interest rates took a surprise 0.25% leap and the latest move is likely to cost holders of, for example, an £80,000 mortgage, an extra £13 a month.
Independent licensed property agent GA-Select MD Graham Allman said: "We're edging closer to areas of caution and this is the highest interest rates have been since 2001."
But Allman believes it will not make a difference to lending. He says: "It's just a way to try and put a lid on the number of people taking out mortgages but anyone who has arranged their finances in the last 12 months or so should be able to absorb this.
"Realistically - if we take the £80,000 mortgage model - it's costing a business about 30p a day. That means selling an extra packet of crisps or another dash of lime in a pint of lager," added Allman.
Acorn Commercial Finance partner Paul Thompson said he had been expecting the rise. "Historically this is still a low rate and it doesn't make a huge amount of difference if you spread it out over a long period of time."
Thompson gave the example of borrowing £300,000 on a freehold that costs £400,000.
"With the interest rate rise, that will mean monthly repayments go up from £2,074 to £2,121. That's £564 a year - meaning a pub will have to take an extra £1,850 a year.
"If a freehold is worth £400,000, let's assume turnover is £200,000. That means an increase in sales of 0.925% or an increases in prices by 0.925%."
Thompson added that this was nothing compared to council tax or utility-bill price hikes. "When we arrange finance, we always stress-test the pub and we have been taking this rise into account for months."