The Bank of England has increased base rate by 0.5 per cent to 3.5 per cent.

This is the ninth consecutive base rate rise since December 2021 and even before this afternoon’s news, the rate was already at its highest level for 14 years.

The worst may still be to come as many analysts suggest base rate could reach 4.5 per cent by the middle of next year.

Today’s rise is likely to hit most some 1.6m people on tracker and variable rate mortgages who will face an immediate increase in monthly payments.

The BBC calculates that today’s rise from 3.0 to 3.5 per cent would mean those on a typical tracker mortgage would pay about £49 more a month. Those on standard variable rate mortgages would face a £31 jump.

This would come on top of increases following the previous recent rate rises. 

Compared with pre-December 2021, average tracker mortgage customers would be paying about £333 more a month, and variable mortgage holders about £210 more.