The Bank of England on Thursday raised the base rate from 0.25% to 0.5% - the first rate rise in over a decade. Here's what you need to know, including the very latest on how individual banks' mortgage and savings rates are changing.

The base rate is the Bank of England's official borrowing rate, which influences what borrowers pay and savers earn. Thursday's increase is the first since July 2007 - it means many mortgage payers could pay around £200/year more per £100,000 they owe, but savings rates will also increase for many.

The Bank’s nine-member Monetary Policy Committee – which sets the base rate – voted by 7-2 to increase the rate. It said it had raised the rate in a bid to lower inflation to the 2% target, after the Consumer Prices Index, a key measure of inflation, rose to 3% in September.

We've published a full briefing on what the changes mean for you. See below for specific info on how your bank will change mortgage rates and savings rates (we'll update this when we get more)

Martin Lewis
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Martin: 'There’s still a window of opportunity to get current cheap deals'

MoneySavingExpert.com founder Martin Lewis said: "Millions of people on variable mortgages will see a direct increase in cost of roughly £200 a year per £100,000 of outstanding mortgage.

"And most lenders will pass on the full 0.25% if not more. Lenders change their standard variable rates not only based on interest rate moves, but for their own competitive advantage. Do not be surprised if some lenders use this move as an opportunity to sneak rates up further maybe, 0.3%.

"The bigger picture though is this is likely to be the beginning of the end of uber-cheap mortgages. New fixes are already a tad costlier as the market's anticipated rate rises; yet for now, deals are still incredibly cheap. And it’s important to understand that most lenders set aside a tranche – say, £30m-worth – that they're willing to loan at the current rate.

"Those deals stay till that tranche is gone, so if rates do rise, there’s still a window of opportunity for the next couple of weeks to get current cheap deals. Everyone should check to see if they’re overpaying."

On savings, he said: "Low interest rates have been a plague for many with savings, especially those who've retired and expected to live off the interest. So rate rises are generally good news for them – indeed we’ve already seen rates crawl up in expectation.

"The top easy-access deal is now 1.3%, compared to just 1% a few months ago. This means I doubt we’ll see the top best-buys rise by the full 0.25% over the next few weeks. With a little bit of crystal ball-gazing I’d say we’ll see them max out at 1.4% to 1.5%.

"Yet many people have money in savings accounts already paying pitiful, spitworthy rates like 0.1%, and they are unlikely to rise. Those in a middling account paying about 0.5% may see an increase over the next few weeks. But if you're earning less than 1%, it's a crap account anyway so you should ditch and switch."

What does the rise mean for mortgages?

If you're on a fixed-term mortgage you won't see any immediate change - though if your deal ends soon, the one you move to may cost more.

If you're on a standard variable rate (SVR) or 'discount' mortgage, the rate is set by the lender, but your mortgage is likely to get more expensive. If you're on a tracker mortgage, it definitely will - as the name suggests, these 'track' the base rate.

A 0.25 percentage point rise could cost roughly £200 a year more per £100,000 of outstanding mortgage. For full help see our Remortgage Guide.

What each lender decides to do in the wake of any interest change is key. Here's what we know so far - also see our Some tracker mortgage rate rises to hit TODAY MSE news story.

This table was last updated at 11am on Thursday 9 Nov.

What mortgage providers are doing

Provider Change to tracker mortgages Change to SVRs
Bank of Ireland 0.25 percentage point rise from 1 Dec Under review
Bank of Scotland 0.25 percentage point rise from 1 Dec Under review
Barclays 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 4.99%
Bradford & Bingley 0.25 percentage point increase from 1 Dec or 1 Jan depending on T&Cs Under review
Britannia Under review Under review
Clydesdale 0.25 percentage point rise from 3 Nov 0.25 percentage point rise from 1 Dec to 4.95%
Co-op Bank 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 4.74% or 5.75%
Coventry 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 4.74%
First Direct 0.25 percentage point rise from 2 Nov Under review
Halifax 0.25 percentage point rise from 1 Dec 0.25 percentage point rise to 3.99% from 1 Dec
HSBC 0.25 percentage point rise from 3 Nov Under review
Leeds BS 0.25 percentage point rise by 1 Dec Under review
Lloyds 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 2.5% or 3.99%
Nationwide 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 3.99% or 2.5% (1)
NatWest 0.25 percentage point rise from 2 Nov Under review
Newcastle 0.25 percentage point rise from 1 Dec Not passing on base rate rise - SVR will remain at 5.99%
Northern Rock Asset Mgmnt 0.25 percentage point increase from 1 Dec or 1 Jan depending on T&Cs Under review
OneSavings Bank Under review Under review
Paragon 0.25 percentage point rise from 1 Dec Under review
Principality 0.25 percentage point rise but not said when Under review
RBS 0.25 percentage point rise from 2 Nov Under review
Sainsbury's Under review Under review
Santander 0.25 percentage point rise from 1 Dec 0.25 percentage point rise from 1 Dec to 4.74%
Scottish Widows 0.25 percentage point rise from 1 Dec  Under review
Skipton 0.25 percentage point rise by 7 Nov for new custs and from 9-16 Nov for existing custs depending on the product held Not passing on base rate rise - SVR will remain at 4.7%
Tesco Bank 0.25 percentage point increase from 3 Nov Under review
TSB 0.25 percentage point rise from 1 Dec  0.25 percentage point rise from 1 Dec to 2.5% or 3.99%
Ulster Bank 0.25 percentage point rise from 2 Nov Under review
Virgin Money
0.25 percentage point rise from 1 Jan Under review
West Brom BS 0.25 percentage point increase from 1 Dec Under review
Yorkshire BS 0.25 percentage point rise from 10 Dec (30 Nov for N&P) for existing custs and from 2 Nov for new custs 0.25 percentage point rise to 4.99% from 10 Dec (12 Dec for N&P). Accord Mortgages rate dropping from 5.34% to 4.99%
1) Mortgages taken out before 30 April 2009 are currently 2.25% and will rise to 2.5%. Those taken out after that date are 3.74% and will rise to 3.99%.

To see the likely impact on you see our Ultimate Mortgage Calculator.

What does the rise mean for savings?

For savers the interest rise is good news, as many - though not all - will see interest rates rise as a result. If your savings are earning anything less than 1% you should consider ditching and switching - see our constantly updated top picks see our Top Savings Account guides.

Again, what's key here is what each individual savings provider does. Here's what we know so far - again, we'll be updating this and adding banks throughout the afternoon, so if your provider's not given an answer yet, check back.

This table was last updated at 11am on Thursday 9 Nov.

How savings rates will change

Provider Variable savings account rates Current account rates
Bank of Cyprus Under review N/A
Bank of Ireland Under review Under review
Bank of Scotland Under review Under review
Barclays Under review N/A
Britannia Under review Under review
Clydesdale Under review, but accounts tracking the base rate will rise by 0.25 percentage points from 3 Nov Under review
Co-op Bank Under review N/A
Coventry All variable rates up 0.25% from 1 Dec N/A
First Direct Under review N/A
Halifax Under review Under review
HSBC Under review N/A
Leeds BS Under review N/A
Lloyds Under review Under review
Nationwide Some but not all accounts will rise by 0.25 percentage points from 1 Dec (1) No change
NatWest Under review Under review
Newcastle Variable savings rates will rise by 0.25% from 3 Nov, 6 Nov or 1 Dec depending on account (2) N/A
NS&I All variable rates, including Premium Bonds, up 0.25% from 1 Dec N/A
OneSavings Bank Under review Under review
Paragon Under review N/A
Principality Under review N/A
RBS Under review Under review
Sainsbury's It "anticipates increasing interest rates" but details TBC N/A
Santander 0.25% rise to many variable savings rate products from 4 Dec (3) Under review
Scottish Widows Under review Under review
Skipton 0.25 percentage point rise for all on-sale accounts. Accounts you can no longer open will have a min of 0.5% interest from 5 Dec N/A
Tesco Bank Under review No change
TSB 0.15% rise to most variable savings rate products from 1 Dec (4) No change 
Ulster Bank Under review N/A
Virgin Money
0.25 percentage point rise on savings tracker products, plus Young Saver, Help to Buy ISA and Saving to Buy accounts, from 1 Dec No change
West Brom BS Most products under review, but accounts that track base rate to rise by 0.25 percentage points within 7 days. N/A
Yorkshire BS 0.25 percentage point increase on variable interest accounts from 14 Dec N/A
1) Savings customers who had rates cut following the base rate cut in Aug 2016 will see rates rise (includes Loyalty Saver, Flexclusive ISA and Smart Junior ISA) 2) Maturity+/Maturity+ ISA, Base Rate Tracker Deposit/ISA, Cash ISA & Base Rate Tracker/ISA from 3 Nov, Community Saver/ISA from 6 Nov, all other variable products from 1 Dec 3) Everyday Saver, ISA Saver & Inheritance ISA will rise by 0.15%, Instant Saver will rise by 0.09%, accounts linked to base rate will increase by 0.25% on 1 Dec 4) No change to Junior cash ISA rate, Young Saver rate will rise by 0.25%, Business Banking rates will rise by up to 0.05%

The base rate explained: watch the video

For a quick explanation of what the base rate is and what Thursday's change means, watch our video below:

What does the base rate cut mean for student loan repayments?

One lesser-known impact of the base rate change is that it could help determine some student loan interest rates.

The rate for those who graduated between 1998 and 2011 in England and Wales (and post-1998 graduates in Scotland and Northern Ireland) is either the previous March's inflation (RPI) rate or the UK base rate + 1%, whichever's lower.

March 2017's inflation rate was 3.1%, so the base rate + 1% is still lower at 1.5%. The interest rate change will take effect from 1 December 2017.

For more on how these repayment rates are set, see our Should I Repay My Student Loan? guide.

Will there be another rise?

There's not likely to be another one immediately.

On the timing of the next rise, Bank of England governor Mark Carney said: "The Monetary Policy Committee continues to expect that any future increases in interest rates would be at a gradual pace and to a limited extent."

Martin also thinks another rise isn't imminent. He said: "What was missing from the Bank of England's statement was that interest rates will have to rise faster than expected, which it was expected to say. So that subtly signals that we perhaps won't see any more interest rate rises this year, and any further rises will be deeper into 2018 than was previously expected."

See the MPC's decision for more information.

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