The rise would be an immediate shock to borrowers with standard and tracked variable mortgages, of which there are a total of 1.6 million in the UK, according to banking association UK Finance, whose rates are linked to the Bank Rate.
According to figures from financial analyst Moneycomms and TotallyMoney, a lending app, the monthly payments of a borrower with a standard variable rate mortgage of 250.000 £ rise by £62 overnight.
The monthly mortgage payments for a variable mortgage in the amount of 250.000 are now £280 higher after the bank's interest rate was raised today, compared with November last year before rates first began to rise.
Borrowers who trade at a fixed rate are not immune to a rate hike. Your monthly payments won't rise overnight, but lenders have been doing their best deals and raising rates every day this week in anticipation of the bank rate rise.
Those who delayed setting a new interest rate for two months will now be thousands of pounds worse off over the life of their next deal.
The cheapest two-year fix available at the start of July cost 2.95%, but it has now risen to 3.84%, according to broker L&C Mortgages at Cambridge Building Society. For a mortgage in the amount of 250.000, the interest rate differential equates to an additional £119 per month, or £2856 on a two-year contract.
Mortgage brokers have warned banks and building societies that they will continue to raise rates after today, and markets expect bank rate to reach 4% next year, probably.
But there are still ways to navigate the volatile mortgage market and ensure you get the best deal.
Act now, but don't panic
Given the speed at which lenders are dragging rates down, it is imperative that borrowers secure a fixed rate mortgage sooner rather than later and before rates rise again.
The cheapest five-year fixed deal is currently 3.54%, but Simon Gammon, broker at Knight Frank Finance, said the best five-year deals could cost more than 5.35% by the middle of next year if the bank's interest rate is expected to rise further.
A borrower with a loan of 250.000 £ would pay monthly 1.Pay £257 in mortgage payments if it held the lowest rate for five years today, but this would rise to 1.£512 a month rise if he waited until the best rate was 5.35% next year. An extra £255 per month.
Many lenders offer mortgages that can be held for six months, some for as long as nine months, meaning borrowers can lock in a six-month interest rate before they need the loan. "Borrowers who act quickly can save a lot of money," added Mr. Jamon.
But even though time is of the essence, borrowers should avoid panicking and sticking to an unsuitable deal, warned Sabrina Hall of broker Kind Financial Services.
Ms. Hall said, "Although early delivery is a priority for most people, I would advise my clients to focus not only on pricing.
"Variable prices are still the best option for some of them if they want flexibility in the future, and for some short-term solutions make more sense depending on their future plans."
Early exit from a fixed-price deal when conditions later change can result in heavy fines of up to tens of thousands of pounds.