The rise will come as an immediate shock to borrowers on standard variable rate and tracker mortgages, of which there are a total of 1.6 million in the UK, according to banking trade body UK Finance, whose interest rates are set by the Bank. is connected to

According to figures from financial analysts Moneycomms and TotallyMoney, a credit app, a borrower with a £250,000 standard variable rate mortgage would see their monthly payments rise by £62 overnight.

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Monthly mortgage payments on a £250,000 variable mortgage are now £280 higher today after the Bank rate hike, compared to November last year, before rates first rose.

Borrowers on a fixed rate deal are not protected from rate hikes. Their monthly payments won’t go up overnight, but lenders are raising their cheapest deals and rates on a daily basis this week in anticipation of a bank rate hike.

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Those who delayed locking down the new rate for a couple of months will now be thousands of pounds worse off over the life of their next contract.

According to broker L&C Mortgages, the cheapest two-year fix available at the start of July was 2.95pc, but has now risen to 3.84pc with Cambridge Building Society. The difference in rates on a £250,000 mortgage equates to an extra £119 a month, or £2,856 on a two-year contract.

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Mortgage brokers have warned banks that rates will continue to rise after today and markets are forecasting Bank Rate to hit 4pc next year.

But there are still ways to navigate the choppy mortgage market and make sure you get the best deal.

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Act now, but don’t panic.

With the speed at which lenders are pulling rates, it’s important that borrowers look for a fixed-rate mortgage lock in deal sooner rather than later before interest rates rise again.

The cheapest five-year fixed deal currently costs 3.54pc, but Simon Gammon of broker Knight Frank Finance said the best five-year deals could cost more than 5.35pc by the middle of next year if bank rate rises continue. May be. As predicted.

A borrower with a £250,000 loan would pay £1,257 a month in mortgage payments if they locked in the cheapest five-year rate today, but if they waited until next year the best rate was 5.35pc would be £1,512. An extra £255 a month.

Many lenders offer a mortgage that can be held for six months, and some for up to nine months, meaning borrowers can lock in the interest rate half a year before they need the loan. “Borrowers who act quickly save a lot of money,” Mr. Gaiman added.

But while time is of the essence, borrowers should avoid panicking and making inappropriate deals, cautioned Sabrina Hall, broker-type financial services.

Ms. Hall said: “While closing quickly is a priority for most people, I would also advise my clients not to focus solely on rates.

“For some of them a variable rate is still the best option if they want flexibility in the future and for some a shorter term may make more sense depending on their future plans.”

If circumstances change at a later date, leaving a fixed rate contract early can lead to expensive penalties of tens of thousands of pounds.

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