An interest rate rise of 50 basis points – putting the base rate at 1.75% – would see mortgage payments for first-time buyers (FTBs) increase to an average of 40% of their gross salary, says Rightmove.

It adds that this ratio of payments to salary has not been seen since 2012.

Rightmove details that the average mortgage payment would rise from £976 a month, which makes of 38% of an average gross salary today, to £1,030.

Historical data cited by Rightmove shows that 10 years ago, a 10% deposit for an average FTB home was £14,316. That has since risen by 57%, to £22,943.

Within the same time frame, the average gross monthly salary has increased by 31%.

And the average price of a FTB property is currently £224,943.

The Monetary Policy Committee will announce any changes to the Bank of England’s base rate tomorrow afternoon (4 August). Many economists do indeed predict a hike of 50 basis points.

Rightmove housing expert Tim Bannister says: “FTBs trying to get onto the ladder are currently facing average monthly mortgage payments that are 20% higher than the start of the year due to rising interest rates and asking prices, and that’s assuming they’ve been able to overcome the hurdles to raise a large enough deposit.

“With each jump in interest rates, home-owners are contributing approximately 1% extra of their gross salary on average towards a mortgage.

“Average mortgage rates for a two-year fix are just over 3% compared to nearly 6% ten years ago, so they are still historically low. However, as they creep upwards, the large number of FTBs looking to move this year may look for some financial certainty by locking in longer mortgage terms.”

He adds: “Demand for FTB type homes is up 35% compared to the last ‘normal’ market of 2019, which shows a high motivation to move from first-time buyers despite the challenges.”