What does the UK interest rate rise mean for homeowners and savers?

For the vast majority of borrowers the answer is no: more than 7.3m (87%) of Britain’s almost 8.5m existing residential mortgages are on a fixed rate. That means their monthly repayments will stay the same until their current deal ends. But for some, this period of calm won’t last long: if an existing deal is finishing soon, consumers could well face a payment shock.

The base rate hike will immediately translate into higher borrowing costs for the 510,000 homeowners with a base-rate tracker mortgage. The rate they pay will rise in line with the Bank’s increase.

The banking body UK Finance says monthly paymentss for a typical tracker mortgage customer (with an outstanding balance of £147,000) will rise by £30.72 as a result of Thursday’s decision.