HOUSE prices in the UK will fall by at least 10% in 2023, experts have predicted.

The warning comes after mortgage providers pulled hundreds of deals and raised interest rate payments to levels not seen since before the 2008 financial crash.

Banks and building societies slashed mortgage deals after the pound fell to historic lows against the dollar following Chancellor Kwasi Kwarteng's tax-slashing mini-budget.

The mortgage offers that do remain come with massive borrowing costs for buyers, reducing how much they can afford to pay for houses.

Ray Boulger, a senior mortgage technical manager at mortgage broker John Charcol, said the big issue is the surging level of monthly repayments.

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He told BBC Radio 4's Today programme: "I think we can expect to see a significant fall in house prices, perhaps around 10% next year.

"The key factor in house prices is how much people can afford on their monthly mortgage. The biggest issue is the monthly cost. With the cost shooting up so far a lot of people thinking of buying are going to rethink those plans. They may not buy at all.

"If they are going to buy they will buy at a lower level.”

Other experts gave graver warnings, with analysts at Credit Suisse warning that higher interest rates, inflation and the risk of a recession could cause house prices to fall by as much as 15%.

Andrew Wishart, a senior property economist at Capital Economics, agreed predicting a fall of between 10%-15%.

He said: "The rise in market interest rates that has already happened will push up mortgage rates to at least 6% and reduce the size of loans that lenders can offer.

“The resulting drop in buying power makes a significant drop in house prices inevitable.”

The predictions follow a record overnight drop in the choice of mortgage products being recorded by a financial information website, as the economic fallout from Friday’s mini-budget continues. said 935 fewer residential mortgage products were on the market on Wednesday compared with Tuesday.

This is the highest fall on Moneyfacts’ records going back to November 2011.

It is also around double the previous record, when the choice fell by 462 on April 1 2020, in the early days of the UK’s coronavirus pandemic lockdowns.

Moneyfacts counted 2661 mortgage products on the market on Wednesday, down from 3596 on Tuesday.

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Rachel Springall, a finance expert at said: “Borrowers would be wise to keep calm over the current volatility in the mortgage market and seek the advice from an independent broker.

“Various lenders have been very vocal that their decision to withdraw products is a temporary measure, amid the uncertainty over interest rates.

“Borrowers who are currently locked into a fixed rate may be better off coming out of their deal early to refinance before rates climb higher, but this entirely depends on their current situation and the costs to do so.

“Those looking to remortgage may find they have more equity in their home amid rising house prices, but first-time buyers may be struggling to find a property they can afford.”