THOSE HIT THE MOST

New research from Experian, the credit reference agency, suggests that middle-class home owners aged between 50 and 55 are most likely to feel the effects of rising interest rates.

The firm estimated that 61pc of this group had variable-rate mortgages, which are likely to cost more following the increase in the Bank Rate from 0.25pc to 0.5pc last week, and minimal savings to cover the extra cost.

A home owner with a 2pc tracker mortgage of £200,000 over 20 years will see their monthly repayment increase by £24 a month to £1,036 as a result of the Bank Rate rise. This adds up to an extra £288 a year.

James Jones, from Experian, said: “Perhaps surprisingly, middle-class professional people in their early to mid-50s are most likely to be affected by the sting of rising interest rates – because this group on the whole is living for the now, despite being home owners.

“Home owners who bought only in the past seven years would never have experienced an interest-rate increase. This increase in Bank Rate means that many will have to navigate higher mortgage payments for the first time when real wages are falling.”