MORTGAGE repayments look set to become more expensive for the first time in more than a decade.

The Bank of England announced this afternoon that interest rates will rise from 0.25 per cent to 0.5 per cent – the first time they have increased since July 2007.

Although it will be a blow to millions of mortgage borrowers who are on variable rate deals, savers will also be able to look forward to increased returns.

Members of the Bank of England’s Monetary Policy Committee (MPC) announced they voted for the rise at midday.

The Bank’s Governor Mark Carney has repeatedly warned that a hike might be imminent as Brexit-fuelled inflation continues.