The Bank of England’s monetary policy committee announced this week the base rate rise of 0.25 per cent to 5.25 per cent and the last time this happened was fifteen years ago in April 2008.

However apparently we should be pleased that this increase was not as draconian as July’s hike of 0.5 per cent to 5.0 per cent which shows that inflation has possibly peaked.

Inflation has fallen far more than what was predicted in June as it now stands at 7.9 per cent which is the lowest in over a year, however it is virtually four times higher than the Bank of England’s target of 2.0 per cent

According to Giles Mackay of an instant property buying firm BTL landlords face sustainability issues in the private rented sector, he says: “Much of the discussion around interest rates to date has focused on whether homeowners will be able to meet their mortgage payments, but the Bank of England’s latest 25bps rise puts a question mark over the sustainability of the country’s buy to let sector, which is particularly exposed.

"The popularity of interest-only mortgages among landlords means that 40 per cent are likely to drop below a healthy interest coverage ratio by 2025 – which will require either raising rents at a time when tenants’ budgets are more strained than ever before, or selling up and realising the historic gains in property values of recent years.”

Rachel Springall, finance expert of the independent mortgage monitor Moneyfacts, says: “This latest base rate rise will come as disappointing news to borrowers worried about rising mortgage repayments. Those who still have a low-rate fixed mortgage would be wise to overpay where they can, with the aim of reducing their loan and the term of their mortgage. Interest rates on mortgages are much higher than some may realise, so borrowers will need to ensure they have surplus funds to meet higher repayments when they come off a lower rate deal. Consumers struggling with their outgoings amid the cost of living crisis, or who have become a ‘mortgage prisoner’, would be wise to seek independent advice to review their situation.