Home loans are likely to become more expensive over the course of the next few months, according to the Council of Mortgage Lenders (CML).
Financial markets in the UK and around the world have been pressurised in recent months and the effects of this looks likely to see money lenders up their rates, the CML suggests.
“The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy,” said Michael Coogan, director general of the CML.
“Funding constraints will continue to restrict lending activity and make loans more expensive,” he added.
However, the Mr Coogan did note that the Bank of England looks set to lower the base rate of interest, which could provide some relief for the millions of UK consumers struggling to become debt free.
Earlier this month, the CML reported that mortgage-related debt management is becoming increasingly costly for first-time buyers across the country.