Interest rates: What will the rise mean for you?

The rise in base rates will produce both winners and losers.

The winners will include 45 million savers, who are likely to see higher returns from savings accounts. A number of providers have already announced they will be increasing savings rates in line with the rise.

Those planning on buying an annuity to finance their retirement will also benefit.

But for at least four million households with variable rate mortgages, monthly payments are set to rise immediately.

So how will you be affected?

Variable rate mortgages

Across the UK, 9.2 million households have a mortgage.

Of these, around half are on a standard variable rate (svr) or a tracker rate, amounting to between four and five million households.

These are the people who will be most affected, as their monthly payments will increase.

Those on such variable rates tend to be older, and with relatively small outstanding mortgage balances.

On average, such households owe £89,000, and will face rises of between £11 and £12 a month, according to UK Finance