Rising rates ‘very painful’ for homeowners

Rightmove’s warning follows the latest 0.25 per cent hike in the base rate – the third such occurrence since August.

The firm acknowledged that the rate rises were partly in response to rising property prices but cautioned that driving up borrowing costs is a “high risk strategy for the economy”.

Many experts are already worried that the amount of unsecured and secured debt owed by UK consumers will push householders towards bankruptcy.

However, a BoE survey in December found that although the number of people unable make a mortgage payment for over 12 months had increased, most homeowners are actually comfortable with the amount they owe.

According to Rightmove, house prices have risen 0.5 per cent this month, which means the average asking price in England and Wales is now £222,859.