The Bank of England has recently increased interest rates from the record low of 0.25 per cent to 0.5 per cent.
The impact of this change on your mortgage will depend what kind of mortgage you currently have. If you are on a variable-rate tracker mortgage you will see an increase in the interest on your mortgage straight away.
Martin Lewis, founder of MoneySavingExpert.com, said: “Millions of people on variable mortgages will see a direct increase in cost of roughly £200 a year per £100,000 of outstanding mortgage.
It is highly likely that most lenders will pass on the full 25% to borrowers and some may even take the opportunity to add a little extra, perhaps 0.3% where they can.
It’s important to know what kind of mortgage you have and how you might be impacted by these rates.