'We have a £450,000 mortgage – but we're relaxed about the interest rate rise'

A couple who bought a two-bed flat this year say they have few immediate concerns thanks to their fixed-rate deal

The size of mortgage taken out by first-time buyers Kieran Ellis, 32, and Jordan Stefanov, 29, will send shudders through many people. The couple borrowed about 450,000 in June to buy a 490,000 two-bed flat in Crystal Palace, south London - but they are relatively relaxed about the rise in interest rates.

A 0.25% rise in rates adds 54 to the monthly payments on a 450,000 loan. But like the majority of young buyers Kieran and Jordan have taken out a fixed-rate mortgage - in their case pegged at just 1.8% for two years - so the rate rise has no immediate impact on their repayments, which come in at a bit below 2,000 a month.

Related: What the interest rate rise will mean for you