Banking litigator Roger Brown warns of Australian house price bubble as interest rates rise

A banking expert who leads lawsuits against Australian banks is warning of a major property market crash as interest rates rise.

Roger Brown, a former Lloyds of London insurance broker, is forecasting the ‘biggest bubble in Australian history’ as Reserve Bank interest rates rise from a record-low of 0.1 per cent.

A possible rate rise on Tuesday would be the first since November 2010, which means it will hit more than 1.5million borrowers would have never experienced a variable rate increase.

In February, 9,994 first-home buyers took out a mortgage for the first time and were among 152,346 who became new homeowners during the past year, Australian Bureau of Statistics data showed.

Many borrowers paying off a house with a seven-figure price tag could see their monthly mortgage repayments…