The Bank of England has kept interest rates at 4.5 per cent for the tenth consecutive month.
Amid signs of economic growth and fears of growing inflation, economic analysts have warned that the bank may increase rates in a month's time.
Frances Walker, a spokesperson for Consumer Credit Counselling Service advised first time buyers and aspiring homeowners that although a potential rise in interest rates would not have an immediate effect, people will "have to plan to find more money to repay their mortgages and if your mortgage goes up you'll have to think how you can manage".
"If you have a fixed-rate mortgage, which most people have, it won't have any impact on you in the short-term," Ms Walker continued.
First time buyers who are not on a fixed-rate mortgage and are repaying on a debt management plan would have to pay more for their mortgage and reduce the amount of unsecured debt they repay.A spokesperson for Citizen's Advice said first time buyers with variable mortgages would feel the impact of a rise in interest rates most, with the anticipated 0.25 per cent increase leading to a £40 or £50 rise in monthly repayments.
"But some people may be speculating if there is a rise in interest rates that potentially might lead to an increase in mortgage arrears or possibly repossessions," the spokesperson continued.
