Millions across the UK face losing out on nearly £1,500 per year as the Bank of England looks set to raise interest rates from 2.25% to 3%.

The Bank of England is poised to unveil the biggest hike in interest rates for 33 years next week as the central bank continues its efforts to tame inflation.

It will be the eighth consecutive jump in interest rates by the Bank but will represent the biggest increase since 1989.

The price hike means homeowners on a standard variable rate mortgage could see their annual payments rise by £1,476 a year.

Sarah Coles, personal finance expert at Hargreaves Lansdown said: "For anyone on a variable rate mortgage – like a standard variable rate or a tracker mortgage – much of this rate rise is likely to be passed swiftly through into your monthly payments."

The number of mortgage approvals fell significantly in September, the Bank of England said mortgage approvals for house purchases decreased to 66,800 in September, from 74,400 in August.

Karim Haji, UK head of financial services at KPMG, said: "As we saw in September, lenders reacted to the market turmoil by repricing mortgage rates or withdrawing products altogether."

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