850,000 hit with ‘immediate increase’ on mortgage payments as interest rates rise

“The latest interest rate hike is being closely followed by a new, higher energy price cap, further compounding pressure just as we head into the cold winter months.”

Unfortunately this may not be the end of rising prices for homeowners.

Borrowers could also face a rise in costs as the central bank ramps up interest rates, with financial markets anticipating the Bank’s base rate to reach 4.5 percent by March next year.

Ross Boyd, founder of the mortgage comparison platform, Dashly.com, said a rate increase of 0.75 percent this week will “send shockwaves” through the property market.