Bank of England interest rate decision in DAYS could see £1000 added to 2m household bills

Across the UK around 850,000 properties are on tracker mortgages, which directly follow the Bank of England base rate, while 1.1 million are on standard variable rates which follow a rate set by the lender, though in reality this is often influenced by changes to the Bank of England rate.

Many of those on such terms have already seen monthly repayments rise following the consecutive string of rate rises the Bank has carried out since December last year, taking the base rate from 0.1 percent to 0.75 percent.

Alastair Douglas, CEO of TotallyMoney, said: “As the Bank of England increases the base rate to ease inflationary pressures, the two million homes on variable-rate and tracker mortgages will see their household finances squeezed even more.

“And the situation isn’t going to get much better for those nearing the end of their current deals.