Others in the industry were cautious about making future predictions.
Martin Stewart, the founder and director of brokerage London Money noted that many brokers tried to predict what would happen after the “mini” Budget and few were successful in calling it correctly.
“A lot of these oriels forget there was a year between Northern Rock being ‘saved’ and Lehman's filing for bankruptcy,” Stewart said.
However, in his opinion anyone coming off a fixed-rate or hoping to get a mortgage in the near future should be doing their best to save money now on the assumption that interest rates will climb higher.
Last week's inflation figure for April caused swap rates - a leading indicator for mortgage rates - to sharply increase.
This in turn, resulted in the mortgage market reaction currently being seen.
Since last week, swap rates have risen further with a one-year Sonia swap sitting at 5.35 per cent today, up from 4.89 per cent on May 23.
jane.matthews@ft.com
