As the UK braces for what is expected to be the biggest hike in interest rates in decades, many first-time buyers are worried about how it could affect them.

The rate is predicted to increase by upwards of 0.75%, meaning rates will increase from 2.25% to 3%, according to analyst prediction. 

The new rise comes following the economic turmoil under former Prime Minster Liz Truss's government, as new PM Rishi Sunak promises to create a new plan to repair the nation's finances. 

As interest rates influence mortgages, first-time buyers are set to be heavily affected by the increase. 

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What the rise in interest rates means for first-time buyers

Unfortunately, it doesn't look like good news for first-time buyers in the UK.

As the hike is expected to make it harder to get onto the property ladder with the added rising cost of saving for a deposit. 

Seeing new homeowners no longer have to pay the average £22,409 for their 10% deposit as house prices continue to rise according to property website Rightmove. 

With house prices surging, bank Nationwide said that the UK's annual rate of property price growth had reached 11% to a whopping £271,209 in July.

The hike in interest rates will also see another hit to new buyers, as monthly mortgage payments will become even more expensive. 

As Rightmove shared that the expensive mortgage deals mean the average monthly home loan payment for a first-time buyer in the UK currently stands at £976 –20% higher than the figure for January at £813.

But with the predicted increase of 0.75%, buyers face an increased monthly payment, meaning that mortgage payments could make up more than 40% of a homeowner's gross salary.