Just weeks ago, the prospect of a rate rise coming in the next few months was imminent, according to the Bank of England. The central bank made an announcement that inflation had started to move a bit, demand for housing was at a constant high, and borrowing was at a feverish pace. Interest rates would have to move upward in order to slow activity down and prevent a meltdown. Now, due to the chaotic economic climate in China, the likelihood of a rate rise before the fall of 2016 is unlikely, according to City estimations.

The possibility of a rise in the UK base rate by the beginning of next year was almost a certainty a few weeks ago. A tumultuous economy in China is now dictating another outcome, a delay in the increase of interest rates.

As house owners are obtaining remortgages at a pace not seen in four years, lenders are just trying to keep up with demand and continue offering the opportunistic mortgage lending product at the best rates possible. Many house owners took advantage of the remortgage option within the last few weeks following the remarks made by the governor of the Bank of England.

Richard Woolhouse, the BBA’s chief economist, commented on the latest news to emerge, saying: “Everything that has happened in China this week puts the likelihood of that rise back two to three months. But even if rates do go up in the near future, I don’t think mortgage rates will go up as much and, in any case, this won’t impact much on people’s decision to buy a house.”

Woolhouse added: “Even if rates go up faster than expected I don’t think that would affect the housing market. The fact is that price rises are being driven by a shortage of housing and demand outstripping supply.”