The Bank of England has announced a 0.75 percentage point increase in its base interest rate, the largest hike in 33 years.

Mortgage rates will be affected and have already been skyrocketing in the past few months following the last government's mini-Budget in September. The average two-year fixed-rate deal carries a rate of 6.47pc, up from just under 2pc two years ago.

Use our calculator to work out how recent shocks to the mortgage market might impact your monthly payments.

First-time buyer

A first-time buyer bought their £250,000 home with a 10pc deposit and 2.1pc mortgage two-year rate in October 2019.

In September - when mortgage rates started rising, hitting an average of 4.75pc for two years - they would’ve been paying around £288 more a month compared to their current rate.

Just a month later, with base rates rising, the new current average two-year fixed mortgage rate of 6.47pc would see their monthly payments increase by £497, hitting £1,443 in total payments a month.

Even if they earnt £45,000, a high salary compared to the national average, it would see half of their take home pay go to mortgage payments compared to a third before the renewal.

Mid-way through

Someone is renewing a mortgage on their semi-detached home which they bought a decade ago with a healthy 25pc deposit for £221,000.

Their current rate, 1.59pc, is ending; using the current average, they would see their monthly payments jump from £621 on their current rate to £865.

In a worst case scenario, it would increase to £945 if the Bank of England rate hit 6pc next year.

Near the end

This person bought their detached home over two decades ago and has just two years left on their mortgage.

They bought it for just £131,000, the average in England at the time, with a 25pc deposit. They’ve been on a 1.59pc mortgage rate for the past two years.

Because they bought their house when prices were cheap and their remaining mortgage is low, an increase to last month’s high rates would’ve only seen their payments increase from £333 to £344 a month.

A month later, they are a very manageable £350 a month and even a worst-case scenario of 7.9pc mortgage rates would only see their payments increase to £355.

Reader Service: Find out how a lifetime mortgage works and calculate how much cash you could release with the lifetime mortgage calculator