More than five million homeowners face higher mortgages, says Bank of England

Aneisha Beveridge, research director at Connells Group, said: “The era of ultra-cheap borrowing is continuing to fade into the rear-view mirror.

“While many homeowners had hoped mortgage rates would edge steadily lower this year, softening the blow, heightened global uncertainty quickly shifted expectations for the path of interest rates. This has left borrowing costs higher than many had anticipated.

“That uncertainty is weighing on activity across the housing market. While people are still moving when life demands it, many households who can afford to wait are choosing to do so until there’s greater confidence around mortgage rates and the wider economic and policy outlook.

“The impact isn’t just being felt in household budgets. Every time expectations for lower rates are pushed further into the future, more buyers and sellers decide to postpone a move.

“The result is a quieter housing market, with around 100,000 fewer transactions likely to take place across Great Britain this year than would otherwise have been the case.”