While savers have benefited from these hikes, mortgage holders and debt borrowers have been straddled with soaring repayments.
Despite signs that the Bank of England is pausing interest rate increases for the time being, rates continue to be at an unaffordable level for families across the country.
Alice Haine, a personal finance analyst at Bestinvest, broke down why the “worst may not be over” for mortgage holders in the months ahead.
She explained: “For households, the prospect of sky-high borrowing costs softening from here should provide some sense of relief, particularly for those grappling with oversized mortgages or excessive debts.
“However, the worst may not be over yet as interest rates remain at their highest level since February 2008 and are set to stay high for longer causing ripples of discomfort for many.
“Mortgage rates may be continuing to ease from their summer highs, with the average two-year fix now at a slightly more palatable 6.30 percent and the average five-year fix at 5.87 percent.
“But this won’t soften the blow for the many mortgage holders yet to switch from cheaper fixed-rate products taken out before rate hikes began.”
The mortgage expert warned that repayments will likely continue to be high for the foreseeable future across all types of borrowing.
Ms Haines added: “The sudden jump in repayments will constrain spending for more households, while those who fail to lock in a fresh mortgage deal face a whopping average Standard Variable Rate, charged by a lender once an initial deal period on a fixed or tracker rate ends, of 8.19 percent.
“Consumer borrowing costs on credit cards, loans, overdrafts and car finance also remain sky-high making it hard for household budgets to stay on track.”