A mortgage broker has warned homeowners they are in for "a hell of a payment shock" following the expected increase in interest rates.
Julie Memmory, from Pro-Mortgages, based at the Bailey Bird and Warren estate agent in Fakenham, said a number of people will be hit severely when their fixed rates come to an end.
Uncertainty caused by chancellor Kwasi Kwarteng's 'mini budget' has prompted some lenders to take mortgage products off the market.
And on Monday, the pound dropped to a record low against the US dollar.
Ms Memmory said interest rates had already been creeping up since the start of the year, adding that some mortgage products were now returning to the market with higher rates.
And she warned that borrowers coming to the end of a fixed-rate contract would face significantly higher repayments after negotiating a new fixed term.
"If they are coming to the end of a fixed rate, they are going to have a hell of a payment shock,” said Ms Memmory.
“They can either go for another fixed rate, or a standard variable rate which is always higher.
“Someone from the Fakenham area was paying £370 for the past two or three years, and now they would be expected to pay £480. I cannot get better than that - a £110 increase.
“We do have an affordability check to look at rising interest rates, so you hope most of the clients will be able to afford it.
“But, tie that in with energy bills going up, it is going to be very tight for them.”
Nick Bird, director at Bailey Bird and Warren, said it was too early to tell what impact there will be on Fakenham's housing market, but revealed little effect was being felt so far.
“There aren't a lot of mortgage buyers in north Norfolk. People are often moving from London for retirement and downsizing, buying the home with the proceeds of selling.
“There are not that many first-time buyers in the area. People starting out often live in the Norwich and King’s Lynn area.
“It is possible that the lettings market is affected. If people cannot afford the mortgage they want, they will use the letting market which puts more pressure on the properties you let - forcing them [landlords] to put the rent up because of the high demand."
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