The fears of mortgage borrowers across the country have come true already as the UK's largest lender, Halifax, announced an increase in its mortgage rates.
The interest rate of the bank's standard variable rate mortgage has increased from 6.5 per cent to 6.75 per cent, in line with the Bank of England announcement last week that interest rates would go up by a quarter per cent.
Halifax's new rate comes into effect for mortgage borrowers from September 1st and the same percentage point change will be added to tracker mortgages from the same lender.
Andrew Hagger, head of news and press at financial website Moneyfacts.com, said that although a rise in mortgage rates wouldn't make "a massive difference", it could become a cause for concern.
"When you weigh up the additional money you have had to find for your utility bills, for petrol and for council tax [as well as a more expensive mortgage], while household income hasn't been rising at the same rate, then there could be potentially some worrying to be done."To read more about mortgages, click here.
© Adfero Ltd