Mortgage rates are beginning to rise following the Bank of England's Monetary Policy Committee's (MPC) decision to raise rates by 0.25 per cent.

Halifax said on Wednesday that it would bump up its standard variable rate by a similar percentage to the MPC, raising its rates from 6.5 to 6.75 per cent. The new rate will come into force on September 1st.

Abbey also brought up its standard variable rate by 0.25 per cent to 6.75 per cent, while the Northern Rock also brought up mortgage rates by a quarter of a per cent.

Other banks are expected to follow suit.

Andrew Hagger of Moneyfacts.com reassured consumers that the rise in mortgages rates will not make "a massive difference" to most, but said that it could come to be a cause for concern for some.

"When you weigh up the additional money you have had to find for your utility bills, for petrol and for council tax [and a mortgage], while household income hasn't been rising at the same rate, then there could be potentially some worrying to be done," he said.

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