Banks have rushed to pass on higher mortgage costs to millions of customers, just moments after the Bank of England increased interest rates to 0.75pc. 

Lloyds Bank said all of its customers on tracker mortgages would pay 0.25 percentage points more “in line with their terms and conditions”. Lloyds confirmed it was assessing what the Bank Rate increase will mean for customers on variable mortgage deals, with customers expected to be hit with higher rates from May. Around a quarter of Lloyds customers have variable mortgages. 

Santander said its standard variable rate would rise in line with the Bank of England’s increase to 4.9pc from May, while Barclays said its standard variable rate would increase by 0.25 percentage points, from 4.99pc to 5.24pc, also from May.

HSBC said it was reviewing its deals.

The rise will cost borrowers with £250,000 in outstanding mortgage debt an extra £624 a year, or £52 a month. It is the third time tracker mortgage rates have increased since December, as central bankers attempt to stem soaring inflation, which is now forecast to hit 8pc this year having already reached 5.5pc – the highest for 30 years. 

Yorkshire Building Society also announced its mortgages were going up. The mutual initially protected its mortgage customers from more costly monthly bills after the first two interest rate increases, but said this time it was left with no choice but to pass on the cost. 

More lenders are expected to follow suit.