He said: “The biggest immediate impact will be on the monthly payments of those with a variable rate mortgage.
“This will include anyone with a tracker mortgage, which automatically ‘tracks’ the base rate. As a rough guide, if you’ve got a £200,000 tracker rate mortgage at 3.5 percent which now rises to four percent, you can expect your monthly payments to increase by around £50.
“If you’re sitting on your lender’s standard variable rate – or SVR – or have a discount mortgage, your lender has discretion as to whether your rate will change, but these also tend to follow the base rate.”
More than two million households are set to see their fixed term mortgage come up for renewal sometime between December 2022 and December 2023, according to ONS data.