CEO of Alliance Fund, Iain Crawford, commented:

“Another base rate increase was anticipated, albeit delayed by a week, and while a half a per cent jump may certainly seem cause for concern, the cost of borrowing remains very palatable for those looking to invest their hard earned money into bricks and mortar.

Despite the wider pressures of economic uncertainty and the increasing cost of living, we’ve seen an unwavering level of buyer demand continue to cultivate positive house price growth across the UK market and we can expect this buoyancy to remain for the foreseeable future.

The real issue facing the nation’s homebuyers at present isn’t the increased cost of securing a mortgage, but the lack of suitable stock available to them when looking to buy. Unfortunately, the government looks set to keep their head in the sand in this respect, ignoring the burning issue of housing supply and instead choosing to fuel demand with a cut to stamp duty.”

CEO of Octane Capital, Jonathan Samuels, commented:

“While generations of homeowners have only ever experienced a sub one per cent base rate, they are quickly becoming accustomed to the increasing cost of borrowing with a seventh consecutive increase by the Bank of England today and the largest jump in some years.

The average homebuyer is already paying between two to three hundred pounds a month more on the cost of their mortgage versus the end of last year and we’ve already seen many lenders preemptively react to today’s delayed increase so this cost is unfortunately set to climb even further.”

Founding Director of Revolution Brokers, Almas Uddin, commented:

“Not only is the cost of repaying a mortgage our most substantial household outgoing, this cost has also seen the second largest increase in the last year, with just energy bills increasing at a higher rate.

This is, of course, a worry for many homeowners who are already stretched thin financially and have one eye on next month’s energy cap increase.

The bad news is that yet another base rate increase will do little to ease the current situation and so those currently looking to buy, or those on a variable rate mortgage, can expect the cost of borrowing to continue to climb.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“Increasing interest rates are certainly a worry for homebuyers who are now seeing an end to the prolonged period borrowing affordability enjoyed for many years.

However, interest rates still remain historically low and the property market continues to go from strength to strength. So while the current cost of living crisis may cause some to think twice before climbing the ladder, it remains one of the smartest and safest investments you can make, despite the increasing cost of repaying your mortgage.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“Not only has the cost of running our homes increased dramatically in recent months, but the temptation to over borrow while rates were low is now coming back to haunt many homeowners.

Those who purchased a property during the pandemic market boom and have come to the end of their fixed mortgage term, as well as those on a variable rate mortgage, are now being hit with both barrels as the monthly cost of their mortgage climbed considerably.

However, while this is sure to add a degree of caution going forward, it’s unlikely to dampen the appetite of the nation’s aspirational homebuyers, which will ensure that the property market remains resolute despite the wider economic landscape.”

Managing Director of HBB Solutions, Chris Hodgkinson, commented:

“We’ve seen interest rates increase consistently since the first rise in December of last year and while this is yet to rock the boat where house prices are concerned, a seventh consecutive increase will have homebuyers feeling a little queasy, to say the least.

An undertone of economic uncertainty has already dampened buyer appetites to some extent and with the cost of borrowing now substantially higher than it was just a few months back, we can expect the level of buyers entering the market to decline.

When this happens, home sellers will find that they may well have to lower their asking price expectations and this period of adjustment is likely to be an uncomfortable one, with sales falling through due to the market turbulence caused.”