Some lenders have put a temporary halt on mortgage offers for new customers, due to the forecast that interest rates go rise yet again.

Santander and Yorkshire Building Society are just two examples of lenders doing this, which was driven by a drop in the value of the pound.

Nationwide has said alongside this that it will raise rates on a range of fixed mortgages.

BBC News reported that economists expect interest rates to more than double to 5.8% by April, with the current level being 2.25%.

Previously forecasts had estimated that rates would go up to 4% by May, but now it is vastly increased from that.

Bournemouth Echo: Huge interest rates rises may see people unable to afford their monthly repayments (PA)Huge interest rates rises may see people unable to afford their monthly repayments (PA)

Lucian Cook, head of residential research at estate agency Savills, spoke to BBC News and said that fixed-rate mortgages were "incredibly difficult to price at the moment" because of the lack of stability in interest rates.

Which lenders have suspended mortgage offers for new customers?

  • HSBC
  • Santander
  • Post Office
  • Skipton Building Society
  • Yorkshire Building Society
  • Virgin Money

Why is there concern over interest rates?

The mini-budget announced by Chancellor Kwasi Kwarteng on Monday (September 26) caused the pound to fall to $1.08 in value, which is its lowest against the dollar in 37 years.

Mr Kwarteng pledged more tax cuts on top of a £45bn package he had already announced with the mini-budget.

The Chancellor's plans will require a large increase in government borrowing.

BBC News said: "Concerns among investors about the UK's ability to pay that debt led to the value of the pound falling and pushed the cost of UK government borrowing to near record levels.

"Experts said a rise in the cost of long-term borrowing meant the current cost to mortgage lenders of offering new deals was now more expensive."

Concerns have also been raised about new homeowners rushing to secure mortgages at favourable rates before interest rates rise, and then not being able to afford the higher repayments.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, predicted that the average household refinancing a two-year fixed rate mortgage in the first half of 2023 would see monthly repayments increase from £863 to £1,490.