Mortgage expert warns 'the market has virtually come to a halt' as interest rate rises

A mortgage expert says "the market has virtually come to a halt" with many first-time buyers struggling to afford the high cost of borrowing.

It comes as the Bank of England hiked the official interest rate up to 5%, its highest level in almost 15 years.

Peter Seymour, Managing Director of The Mortgage Shop in Jersey, believes many prospective purchasers will be priced out of the market.

"We're all reeling a little bit from the news," he explained.

"The market has virtually come to a halt because most potential borrowers can't satisfy the lenders' requirements.

"We are inundated with people coming in all the time, asking us what we can do for them and sadly we have to tell many of them we can't do anything at the moment."

There is also further pain for those already on the property ladder who have variable mortgage rates and are facing increased monthly payments.

"People who are existing borrowers, if they are going to be able to afford to service their mortgages in the future, they're going to have to forgo a lot of things," Mr Seymour said.

"Things like expensive holidays, a new car, going to the pub and restaurants, putting in a new kitchen or bathroom and so the whole of the economy is going to suffer as a result of those."

ITV News has spoken to experts and asked for their advice on what to do if you are struggling to afford your mortgage payments or worried about rent rises.

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