Northern Eire is sitting on a "mortgage timebomb", based on a property professional.
It's after lenders withdrew a document variety of mortgage merchandise from the UK market because of the prospect of rising rates of interest following the federal government's tax-cutting mini-budget on Friday.
Economists are predicting the developments might result in a 10-15% drop in home costs.
Michael McCord, who compiles the Ulster College home worth index, instructed the BBC's Good Morning Ulster programme that many individuals in Northern Eire had been influenced by low rates of interest once they purchased bigger properties throughout the Covid pandemic.
There was a big rise in home gross sales in Northern Eire between the top of 2020 and the center of 2021.
However these with short-term, fixed-rate mortgages will face greater repayments when their phrases expire.
The Financial institution of England has warned it could hike rates of interest greater in an try and curb inflation. Rates of interest have already risen sharply in current months.
With the specter of one other enhance on the horizon, some lenders are withdrawing merchandise earlier than placing them again available on the market at greater charges.
Mr McCord mentioned that will result in a big enhance in repayments for owners who're because of transfer to a brand new mortgage deal.
"We have now customers coming to the top of their phrases and a core subject is that they really may not qualify or cross the affordability checks with their present lender for his or her present property on their current mortgage, which might be perilous," he mentioned.
Mr McCord warned that some first-time patrons could possibly be "locked out of the market and locked into the non-public rental sector" due to the rising upfront prices of getting a mortgage.
He additionally advised there was "little bit of an ideal storm" that might result in important falls in property costs.
Northern Eire might, nevertheless, be protected because of the restricted provide of properties on the market right here, he added.
The UUP's finance spokesperson Steve Aiken mentioned the mini-budget by Chancellor Kwasi Kwarteng was a "big gamble" with out the help of the Financial institution of England - one thing he described as "astonishing and reckless". He known as on the Conservative Occasion to behave in mild of the impact it is had.
“In a number of brief days the very underpinnings of our financial system have been threatened. Extra worryingly, hundreds of householders at the moment are dealing with big hikes of their mortgages, coupled with those that will now be excluded from residence possession. They're now dealing with a private monetary disaster. A disaster that can solely be compounded by spiralling vitality prices and meals inflation.
“The issues with rate of interest rises and mortgage shortages can't be blamed on Putin, or some other issue. This potential catastrophe sits totally within the lap of the Prime Minister and Chancellor. They've little or no time to repair the issue and should act now. Doubling down on a raffle is insanity," he mentioned.