"Those on variable mortgage rates are unlikely to see any reduction in their monthly bills this year, while the rising possibility of rate hikes is adding another layer of uncertainty to households, which have so far proven resilient but are without doubt feeling the squeeze," said Heywood.
Industry experts advise property buyers and existing homeowners against waiting for lower interest rates in the current economic environment.
"Inflation ticking down is a reminder that in today's geopolitical climate, mortgage rates don't stay predictable for long," said Ben Thompson, director of home moving strategy at Mortgage Advice Bureau.
Thompson pointed out that weak domestic economic performance keeps further interest rate increases unlikely for now.
"Whether you're a first-time buyer or a remortgager coming off a cheaper fixed deal, it's worth exploring options sooner rather than waiting later to see what happens.
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For both groups, locking in a rate you're comfortable with now is often a smarter move than waiting on the chance of a better one later," said Thompson.
