Interest rates rise for the first time in over three years – what does it mean?

The impacts of the interest rate rise will be most visible for mortgage-holders (Picture: Getty Images)

The Bank of England has hiked up interest rates for the first time since August 2023, amid concerns the Iran War could lead to a lengthy bout of inflation.

For almost a year, the Bank Rate has been set at 3.75% after a drawn-out series of reductions from the high of 5.25% three years ago.

But now, the Monetary Policy Committee has agreed to bump it up by a quarter percent to 4%.

The shift will immediately affect the 510,000 mortgage-holders in the UK w...