A Dereham estate agent has revealed most house sales are "still moving forwards" despite market uncertainty and the prospect of rising interest rates on mortgages.

Jamie Minors, managing director of Minors and Brady, said only a "handful" of its properties - less than 0.5pc - had been pulled from the market.

Uncertainty caused by chancellor Kwasi Kwarteng's 'mini budget' prompted some lenders to temporarily stop offering some mortgage products.

It comes as the Bank of England warned significant increases in interest rates would ne needed in response to Mr Kwarteng's proposed tax cuts.

Last Monday (September 26), the pound dropped to a record low against the US dollar.

Mr Minors said a number of buyers and sellers in Dereham had been asking questions about how Mr Kwarteng's announcement might impact them.

“There is some uncertainty from the news, and our job as the property experts is to advise them of their options, help them with a plan and reassure them with their move,” he said.

“There has been market uncertainty with lenders temporarily withdrawing their mortgage deals. However, the majority of lenders are still happy to loan mortgages to their purchasers, which has meant sales are still moving forwards as planned.”

Mr Minors added that the uncertainty had not stopped sales in Dereham and across Norfolk - at both the higher and lower ends of the scale - from going through.

He has also seen a number of purchasers entering the market given stamp duty cuts.

Despite some sales falling through, the company boss revealed properties were receiving plenty of interest after being put back on the market.

“Remember, buyers need to buy and sellers need to sell so, while there is uncertainty in the news, there are still banks lending money and people still very keen to move,” said Mr Minors.

Meanwhile, Stephen Kemp, commercial director and mortgage advisor at Alexander Rose Independent, based in Dereham, said mortgage payers were growing increasingly concerned about fulfilling their repayments.

He added: “I am getting phone calls from clients looking to go onto a new fixed rate as they come to the end of their current deal, and I am seeing new fixed rates rising up to 5.5pc or more.

“I recently spoke to a client about a potential new mortgage rate, and the next day I was told by the lender they were withdrawing their rates and changing them. It is a very turbulent market across the whole country.

“When you factor in the cost of living increases, it is a real problem to meet increased mortgage repayment liabilities for many households.

“People are going to have less or no spare money in their budget in many circumstances to address the increased cost of mortgage repayments. Some people may resort to credit cards in the short term and, in some cases, may drive them to sell and go into rented accommodation.”

Richard Marshall, office manager at estate agent Parsons and Company, based in Quebec Street, said it was "a little too early" to assess the state of the property market.

He added: "There is a lot of media scrutiny surrounding the mini budget and the recent government decisions. I think everyone is looking for more reassurance and prospect of a more settled economy moving forward.

"Buyers are especially waiting to see how things alter with the changes to mortgage deals and interest rates, as well as their own finances.

“There are still many motivated buyers in the market. However, they are now able to take their time before committing to making an offer, which wasn't the case a few months ago due to the fierce competition among buyers.

“New property stock is appearing, which is a positive and this will provide buyers with more choice, especially helping to encourage those who were toying with the idea of moving but were put off by not finding what they wanted.

“Price reductions are now more evident across the board and this highlights the need to set a fair and competitive asking price from the very start, ensuring sellers achieve the best possible price for their homes.