Moving home 'set to become more expensive'

Moving home could soon become an even more unattractive proposition, with fixed rates on mortgages set to increase, it has been claimed.

Speaking on behalf of mortgage lender John Charcol, Ray Boulger suggested a number of finance providers could raise their prices over the coming days.

He explained around four-fifths (80 per cent) of the firm's clients were on fixed-rate deals and said numbers could be similar for others in the industry.

"If interest rates continue to rise then the current recovery in the housing market … may well wobble," Mr Boulger predicted.

He added this is because the recovery has been mainly based on increases in affordability, a fall in house prices and a drop in interest rates.

The comments may spur some homeowners into improving their property with a conservatory or loft conversion.

A recent report from Nationwide suggested increasing floor space by ten per cent could add around five per cent to the value of a typical house.

This amount increases to seven per cent in detached residences.