Santander and Barclays have become the first banks to confirm when they will pass on the interest rate rise to mortgage customers.
The base rate, which influences how much banks and lenders charge customers, was increased from 1.25% to 1.75% yesterday afternoon.
It marks the biggest Bank of England rate hike in 27 years - and is the sixth time in a row that the base rate has been increased.
If you’re a homeowner, the type of deal you’re on will determine if the base rate hike will push up your repayments.
Those with a tracker mortgage will see their rate go up in line with the base rate hike.
If you're on a standard variable rate (SVR) mortgage, then you'll likely see your rates go up as well.
It'll be down to your lender whether to pass on the increase - and most do decide to do this.
Santander became the first high street bank to confirm its SVR mortgage rates are rising, with its rate increasing by 0.50% to 5.99% from the beginning of September.
All Santander tracker mortgage products linked to the base rate will increase by 0.50% from September 3
Santander also owns Alliance and Leicester.
Alliance and Leicester mortgage products linked to the base rate will increase by 0.50% from September 1, and its SVR deals will be hiked on the same day as Santander.
Barclays has also confirmed changes to its mortgage products.
The bank’s SVR deals will increase from 5.74% 6.24% on September 1, while its Buy to Let SVR will increase from 6.24% to 6.74%.
Lloyds Banking Group, HSBC and Nationwide Building Society confirmed to The Mirror that they are still reviewing their SVR mortgage products following the rate rise.
We’ve contacted TSB to see if they’ve announced any SVR increases and we’ll update this article when we get a response.
Around two million people in the UK are on a variable rate mortgage.
I'm on a fixed-rate mortgage - what happens next?
If you’re on a fixed-rate mortgage, the rate rise won’t affect your monthly bill until your current deal expires.
But experts have warned that households face paying thousands of pounds more a year when they do come to remortgage, as rates continue to rise.
Experts say the cheapest deals first started disappearing in November last year, in anticipation of interest rate rises.
Borrowers should use a mortgage comparison 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 the switch remember to factor in any other costs and check if there is an early exit fee associated with your current deal.
Some lenders allow you to lock in up to six months in advance, while most will allow by at least three months.
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: "Borrowers who have not locked into a fixed rate would be wise to move quickly to secure a new deal as interest rates continue to climb.
"Fixing for longer may be in the mindset for some, as there is anticipation for further base rate rises to come.
"The cost of living crisis, interest rate rises and house price growth could price out would-be buyers if they have little disposable income and subsequently eat into their savings.
"On the other hand, remortgage customers may find they have more equity in their home but will need to get some independent advice on whether they can comfortably afford to switch their deal."
