The firm said: “This means a borrower taking a typical £150,000 repayment mortgage over 25 years would face increased monthly payments of £125-130 — adding up to a total of £1500 more per annum in payments when compared to last year’s low point.”

The interest rate rise means a different thing for savers, as you’ll see a marginal increase in the interest your savings will accumulate. Although, these will still be at historically low levels.

And interest rises will not be enough to counteract the impact inflation is having on the value of cash.

Cash savings accounts might suffer because the rate of inflation will be higher than the rate of return on their account.

Equally, investment portfolios might also suffer a loss, as those with fixed income funds investing in bonds could see the real rates of return fall as well.