Nationwide and Santander have become the first major lenders to confirm a hike in mortgage rates following an interest rate increase by the Bank of England.
The BoE yesterday announced it was upping its base rate from 0.25% to 0.5% to help tackle spiralling inflation rates.
One knock-on effect of this, is certain mortgage deals will get more expensive.
Nationwide will increase its mortgage rates from March for customers on its "base mortgage rate" and "standard mortgage rate" deals - these will rise to from 2.25% to 2.5% and from 3.74% to 3.99% respectively.
Customers with tracker mortgages will also be hit with the full 0.25% increase, the lender has confirmed.
Santander has also announced that its standard variable rate will rise by 0.25% from March.
They’ll go up to 4.49% from 4.74% and tracker rates will increase by the same 0.25% amount.
Halifax said it would write to customers with mortgages affected by the BoE rate change to let them know their new monthly payment, according to Mortgage Solutions.
The lender hasn't revealed specific amounts.
If you're on a tracker mortgage, then your rates go up as these move in line with the BoE base rate.
Are you worried about your mortgage increasing? Let us know: mirror.money.saving@mirror.co.uk
But for those who are on a standard variable rate (SVR) mortgage, it is down to your lender to decide whether to pass on the increase to its customers.
If you have a fixed-rate mortgage, your rates won't change following the interest rates increase.
You'll usually be on an SVR type mortgage deal after your fix or tracker rate ends.
Around three quarters of residential mortgages are on a fixed rate, while some 850,000 are trackers and more than a million are standard variable (SVR) deals.
How to compare mortgage deals
If you're a homeowner, there are mortgage comparison tools that you can use to check whether you are on the cheapest deal.
We've got a guide on how to find the best rates here.
When thinking about making a switch, remember to factor in any other costs and check if there is an early exit fee associated with your current deal.
Sadly, banks and lenders have slowly been increasing the rates of their fixed deals for several months now in anticipation of interest rate hikes.
But it is still possible to save thousands of pounds each year if you're an expensive deal and could benefit from locking into a cheaper rate now - especially as interest rates are predicted to keep rising.
Some experts believe rates could go as high as 1.25% by the end of 2022.
New research released today by Experian & L&C Mortgages shows some homeowners could save as much as £5,000 by taking out a fixed rate now.
For example, a homeowner with a £150,000 20-year mortgage loan on a lender’s standard variable rate (SVR) of 4.49% will have a monthly repayment of £948.16.
The same mortgage on a two-year fixed rate remortgage deal of 1.34% will have a monthly repayment of £712.83, representing a saving of £5,647.92 over two years (£235.33 per month).
Taking the arrangement fee of £999 into account, this would still leave a homeowner better off by £4,648.92 over the two-year period.
James Jones, head of consumer affairs at Experian said: "By exploring remortgage options now, homeowners could secure substantial savings by switching to a new fixed-rate mortgage deal, to help offset the effects of inflation.
"Taking no action will mean you lapse onto your lender’s standard rate, which will usually lead to a hike in your monthly payments.
"The Bank of England has raised interest rates to 0.5%. As mortgage repayments also increase, it’s worthwhile exploring your options now and get a new rate locked in.
"You can get help with this by seeking advice from a fee-free mortgage broker. It’s also worth taking a moment to review your credit score and, where possible, make improvements ahead of any formal credit check."
Rachel Springall, personal finance expert at Moneyfacts, said: "Lenders are still launching attractive deals onto the market, so anyone who is still debating on whether to fix may be wise to do so now.
"Those looking for peace of mind with their mortgage payments over the next few years may wish to consider a five-year or even 10-year fixed mortgage to protect them from future rate rises.
"The difference between the average two-year fixed mortgage rate and SVR stands at 2.02%, and the cost savings to switch from 4.46% to 2.44% is a difference of £5,182 over two years approximately."
