The Bank of England has warned that interest rates could see a significant increase after the Government announced its mini-budget on Monday, meaning mortgages could go up for millions of people.

It is reported that economists expect interest rates to more than double to 5.8% by April, with the current level being 2.25%.

As a result, some lenders have put a temporary halt on mortgage offers for new customers, due to the forecast that interest rates go rise yet again.

Santander and Yorkshire Building Society are just two examples of lenders doing this, which was driven by a drop in the value of the pound.

South Wales Argus: Many people will see an increase in their mortgage repayments if the interest rates go up (PA)Many people will see an increase in their mortgage repayments if the interest rates go up (PA) (Image: PA)

Previously forecasts had estimated that rates would go up to 4% by May, but now it is vastly increased from that.

READ MORE - UK interest rates: How high could my rate go?

How much could my mortgage go up?

Interest rates rising could impact two million people on tracker and variable rate deals and will likely get an immediate increase in their monthly payments. 

The increase of 2.25% would mean that those on typical tracker mortgages pay about £49 more a month. Those on standard variable rate mortgages face a £31 jump.

It comes following increases made during the recent rate rises, compared with the pre-December 2021 where tracker mortgage customers are paying about £216 more a month, and variable mortgage holders about £163 more.