Mortgage misery could be set for millions across the country as a growing number of banks have begun pulling mortgage deals over fears the Bank of England will raise interest rates.
There are warnings repayments could rise by £800- and first-time buyers could face paying out £1,100 a month on homes.
In the days since chancellor Kwasi Kwarteng’s first “mini” budget the pound has dropped in value against other major currencies.
Temporarily some mortgage lenders wont be able to offer loans to new customers.
Chris Davis, owner of Davis & Sons Estate Agents said: “The Bank of England have raised interest rates several times over the last 12-18 months even though demand has been high this will affect estate agents and particularly first time buyers.
Davis & Sons believe first time buyers particularly will be hit hard
“It is going to affect people’s ability to get a mortgage if banks and mortgage providers are pulling loans.
“First time buyers will be heavily affected because they don’t have equity from another house and are dependent on a mortgage.
“Not only that it may prevent people from putting their houses on the market because of the rising cost of living people may think it’s better off staying where I am rather than moving.”
Mr Davis expressed that the higher rates will significantly add to people’s monthly costs who are on deals that are expiring or on a variable rate.
Lily Evans, from Fortis, expressed that their estate agents have seen a decline in business and believes the rising interest rates will affect everyone because no one is safe from the changes.
Fortis believe no one is safe
Dean Ahmed from Bluestones believes the higher interest rates has already affected their business.
Mr Ahmed said: “The speed of what properties are selling is at an all-time low.
“It has progressively been getting worse, houses that would usually take 7-10 days to sell are now taking 6-8 weeks.
“It is affecting everyone from first time to next time buyers and we are seeing this play out in front of us every day.
“Buyers are very cautious, and the current climate may result in house prices dropping by 10-15 per cent."
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