The era of low mortgage rates looks to be over, borrowers have been warned, with more market ‘turbulence’ likely in the coming months.

Mortgage costs last week hit the highest level for 15 years after the rate on a two-year fixed deal surpassed the peak in the aftermath of the mini-budget to reach a level not seen since August 2008 and the financial crisis.

Mortgage costs have been soaring recently as lenders grapple with inflation and uncertainty over interest rates set by the Bank of England.

Simon Gerrard, managing director of Martyn Gerrard in north London, said: “There could be a bit of turbulence ahead, especially if we get another interest rate rise.

“Truthfully, though, I think the era of historically low interest rates is over and so once we see buyers and sellers adjust to the new normal, the market should quickly power through any choppiness.”

Gerrard says that his firm has bucked the national trend by securing 97% of the asking price for its properties sold in June thanks in part to a general lack of properties on the market in north London.

But while he attributes the region’s performance partly to the supply-demand imbalance in the market, he, like most agents in the region, accepts that market conditions are getting tougher.