Two of Britain's biggest mortgage lenders have confirmed when borrowers' payments will rise after the Bank of England lifted interest rates to 4%.

Nationwide: 1 December

Nationwide, the UK's second-biggest lender, said its Standard Mortgage Rate will rise from 6.49% to 6.74% from 1 December, and its Base Mortgage Rate from 5.75% to 6%. Tracker mortgage rates will also rise by a quarter of a point from the same date.

Santander: 3 December

Santander said its tracker mortgages will rise by 0.25 percentage points from 3 December. Its Follow-on Rate will rise by the same amount to 7.25%, and its Standard Variable Rate to 6.75%. HSBC has also said its tracker rates will rise by 0.25%, while it is not currently changing its standard variable rate.

What it costs borrowers

The Bank of England raised Bank Rate from 3.75% to 4% on Thursday, its first increase since August 2023. UK Finance, the banking trade body, said a typical tracker mortgage customer with an outstanding balance of £147,000 would see monthly payments rise by £30.72. A typical borrower on a standard variable rate would pay £14.28 a month more if the rise is passed on in full.

Most borrowers will not feel the change immediately: more than 7.3 million of Britain's almost 8.5 million existing residential mortgages — 87% — are on fixed rates, so their payments stay the same until their deal ends. Around 510,000 homeowners have tracker mortgages, which rise in line with Bank Rate.

New deals already at a three-year high

The average new mortgage rate had already climbed to 5.89% at the start of November, a three-year high, according to Moneyfacts, with the average two-year fixed rate at 5.97% and the average five-year fixed at 6.00%.