THREE lenders are set to increase their tracker mortgage rates following the Bank of England's (BoE) latest base rate rise.
Nationwide, Santander and Coventry Building Society are all hiking rates from tomorrow.
Nationwide is hiking its tracker products while adding it is continuing to review its position and will inform members of any future changes.
Meanwhile, Santander's said all Santander and Alliance and Leicester tracker mortgage products linked to the base rate will increase by 0.50% from the start of August.
Santander and Alliance and Leicester Standard Variable Rate (SVRs) will remain the same at 7.50%.
A SVR mortgage is one where the lender sets its own rate and is not directly linked to the BoE's base rate.
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Coventry Building Society is also upping its tracker mortgage rates from tomorrow.
Anyone with this type of product will see their rate increase by 0.50%.
These customers will be written to at least five working days before direct debits under the new rate are taken.
A number of lenders, including Skipton Building Society and NatWest, have already hiked rates on their tracker products since the BoE's last base rate hike on June 22.
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This is because some lenders decide to pass on any increase in the BoE's base rate immediately while others wait.
In most cases, your lender should tell you if your tracker mortgage rate is going to go up.
While banks and building societies might up their tracker mortgage rates from a certain date, you might not actually see any difference until your first payment after that date.
It comes after inflation figures from earlier this month reveal prices are rising by 7.9% compared to 8.7% in May.
The slowdown has led to expectations the Bank of England (BoE) will not increase its base rate, a measure it takes to slow inflation, by as much as expected.
A lower base rate is generally good news for mortgage rates, as if it's higher it has a negative knock-on effect on home loans.
Lenders also often amend their mortgage rates in anticipation of what will happen to the BoE rate.
It comes as figures from Moneyfacts reveal the average two-year fixed residential mortgage rate today is 6.81%.
Meanwhile, the average five-year fixed residential mortgage rate is 6.34%.
What should I do if I'm on a tracker mortgage?
Many homeowners opt for a tracker mortgage as they can offer you greater flexibility.
Just under 640,000 households across the UK are on them, according to the latest figures from UK Finance.
Because they are directly linked to the BoE's base rate, any fall is reflected in your monthly payments.
But, of course, any rise also sees payments spike.
If you're worried about your tracker mortgage payments going up, there are some steps you can take.
Paula Higgins, chief executive of HomeOwners Alliance, said anyone on a tracker mortgage could look at coming off it and going for a different type of deal.
She said: "You may want to consider moving to a fixed deal to protect yourself against further rate rises and help you budget.
"But be wary as some tracker mortgages do have early repayment charges."
Early repayment charges are when you are charged for switching from one type of mortgage deal to another before its term ends.
Some lenders do let you switch deals without paying these fees though.
It's worth checking with your lender what its policy is.
Also bear in mind, if you are considering moving from a tracker mortgage to a fixed one, you will be locking in a rate for an extended period.
That means your monthly repayments might be less than on a tracker mortgage right now, but if the BoE base rate falls in the near future, you might end up having to fork out more each month.
Nicholas Mendes, from John Charcol, added its worth speaking to a mortgage broker.
Brokers act as intermediaries between you and the lender to get the best deal.
Bear in mind though, brokers charge you a fee for their services.
If you are on a tracker mortgage and wanting to find out how much your payments might increase by, you can use an online rate change calculator.
There's one on the Homeowners Alliance you can use while you can find them on most banks or building societies' websites too.
How to get the best deal on your mortgage
There are a number of ways to land the best mortgage deal.
In most cases, the larger the deposit you have the lower the rate you can get.
Meanwhile, a positive change to your credit score or a higher salary could also help you access better rates.
If you have a fixed rate, you could see higher rates when you come to the end of the current term after the BoE rate rises.
And if you're nearing the end of a fixed deal soon it might be worth looking for a new deal now.
You can lock in current deals sometimes up to six months before your current deal ends.
Bear in mind, leaving a fixed deal early will usually come with an early exit fee.
But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.
You can find the best deal using a mortgage comparison tool to see what's available.
You can also go to a mortgage broker who can compare deals for you, but you may have to pay for this service.
It could cost a couple of hundred pounds but it might save you thousands on your mortgage overall.
You'll also need to factor in fees for the mortgage, though some have no fees at all, or you can add it to the cost of the mortgage, but beware that means you'll pay interest on it and so will cost more in the long term.
You can use a mortgage calculator to see how much you could borrow.
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Remember, that you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks, and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
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