Sean Gardner, Chief Executive of MoneyExpert.com, said:
"The rate rise puts further pressure on homeowners’ finances. It’s not the effect of one increase, however, but of five increases in eleven months that is taking its toll.
"More than 7.4 million household bill payments have been missed in the past six months, proving that the Bank of England’s actions are already hitting home. This increase has the potential to worsen this situation further.
"Clearly the major impact will be on homeowners with mortgages and many of us will have to get used to a new standard of living as the cost of mortgage repayments hits home.
"Anyone coming off a fixed rate mortgage deal soon will feel the full effect of the new cost of borrowing. Average fixed rates back in October were only 5.45 per cent, and there were over 100 products with rates under 5 per cent. And fixing at under 4 per cent was a distinct possibility.
"We’ll have to wait and see how providers react, but the average fixed rate mortgage is already over the 6 per cent mark and deals under 5 per cent are on the way out.
"Whatever happens though homeowners have to take action to make sure their monthly mortgage is affordable. If you’re on a variable rate and want certainty then you should fix – and fix now."
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