Mortgage borrowers could see their housing costs rise by up to £369 a year if the Bank of England increases base rate by 25bps, according to UK Finance.

The trade body said the widely-expected quarter-point increase in base rate would push up average monthly payments on tracker mortgages by £30.72, equivalent to an extra £368.64 a year, according to analysis of mortgage market data.

Borrowers on standard variable rate mortgages would also face higher costs, with average payments increasing by £14.28 a month, or £171.36 over a year.

The Bank of England’s Monetary Policy Committee is due to announce its latest interest rate decision on November 5.

Base rate is currently 3.75%.

However, the impact would not be felt equally across the mortgage market, with the vast majority of homeowners currently protected by fixed-rate deals.

UK Finance figures show that 7.36 million residential mortgages, representing 87% of the total, are on fixed rates. A further 510,000 are tracker mortgages, while 470,000 borrowers are on standard variable rate deals.

This means around one million borrowers could be directly exposed to an increase in interest rates, depending on the terms of their mortgage and how lenders respond.

For the average tracker mortgage borrower, who owes £147,468, the current monthly interest payment is £595. A quarter-point increase would add around £31 to their monthly bill.

Those on standard variable rate mortgages have an average outstanding balance of £68,550 and currently pay £373 a month in interest. The same increase would add approximately £14 to their monthly costs.