Martin Lewis has explained how mortgage payments will be affected after the Bank of England put interest rates up.
The base rate has now been increased by 0.5%, from 3.5% to 4%. The Bank of England raised the interest rate on Thursday to help control inflation.
However, when the base rate goes up, borrowing money becomes more expensive. And this could have an impact on mortgage payments.
Read More: Interest rates go up again - what it means for your mortgage, debts and savings
After the Bank of England announced the increase in rates, consumer champion Martin Lewis gave his reaction on Twitter and explained how mortgage payments would be affected. He said that people on a variable/tracker rate mortgage - one that changes in line with interest rates - could now be paying an extra £25 a month or £300 a year for every £100,000 of their mortgage.
He also said that those on existing fixed rate mortgages are unlikely to be affected. Martin wrote: "Bank of England base rate up 0.5% pts to 4.0%.
"Variable/tracker rate repayment mortgages will rise c.£25/mth (£300/yr) per £100,000 of mortgage (use mortgage calc to check). Existing fixes won't change. New fixed rates have already baked rises in."
The financial expert went on to offer advice on savings accounts. He tweeted: "Top paying easy access savings accounts will likely rise over the next few weeks. Most big bank savings will continue to pay diddly squat, so check, ditch & switch.
"Unlikely to see top fixed savings rise much, as this news was well-flagged & thus prob factored in."
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