High street banks have started to confirm the dates for when customers on standard variable rate (SVR) mortgages will be hit by higher costs.
The Bank of England (BoE) yesterday confirmed it has upped its base rate from 1% to 1.25% in a move that affects around two million homeowners.
Those on a tracker rate mortgage will see their interest rates go up automatically in line with the BoE rate hike.
For those who are on an SVR mortgage, your lender is likely to pass on the full interest rate increase to you.
You'll usually be on an SVR type mortgage deal after your fix or tracker rate ends.
Are you worried about how the rate rise will affect your mortgage? Let us know: mirror.money.saving@mirror.co.uk
Santander has confirmed its SVR will rise by 0.25 percentage points from August 1, while its tracker mortgage products will go up by the same amount from July 1.
This includes the Santander follow-on rate (FoR) which will increase to 4.50%.
TSB says the rate changes for variable rate mortgages for existing customers will take effect on July 9, again by 0.25 percentage points.
If you're a Barclays customer with an SVR mortgage, your rate will go up 0.25 percentage points from August 1, the lender has confirmed.
For tracker mortgages, the new rates will come in on June 17 for new customers and August 1 for existing borrowers.
Nationwide says tracker mortgages will go up by the same amount from August 1. It didn't confirm when changes to SVR products will be made.
HSBC and First Direct customers will see their tracker mortgages rise from June 17. The bank hasn't confirmed any changes to its SVR mortgages.
Lloyds Banking Group - which owns Lloyds Bank, Halifax, Bank of Scotland - says it is still reviewing its rates.
Sarah Pennells, consumer finance specialist at Royal London, explained how someone with a £200,000 25-year repayment mortgage will pay an extra £27 a month as a result of the rates hike. This adds up to £324 over the year.
"While some homeowners will be able to afford that, others will undoubtedly struggle, especially as other costs spiral," she said.
"A mortgage broker would be able to recommend the best mortgage for you as it’s not necessarily going to be the one with the cheapest headline rate of interest."
It is important to remember that this is the fifth consecutive BoE rise in a row - so the actual price hike will be hundreds of pounds more compared to rates of 0.1% last year.
However, interest rates are still considered low by historic standards.
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.
"The current average variable rate mortgage is 2.8%, according to the Bank of England, which will rise to 3.05% after today’s increase," explains Laura Suter, head of personal finance at AJ Bell.
"However, the top two-year fix is 2.6%, meaning that at £100,000 of borrowing a homeowner could still save £276 a year by switching.
"On a £250,000 mortgage that would equal a £696 a year saving and on £400,000 of borrowing a homeowner could save £1,116 a year by switching."
