After much speculation, the Bank of England has raised interest rates from 0.5% to 0.75% due to high expectations around the economy, consumer spending, wages and employment.

Although the general rule is that a rise in interest rates is good for savers and bad for borrowers, the 0.5% to 0.75% rise is relatively small, so will not cause difficulty or pain for most homeowners. 

Millions of households with tracker rate mortgages or variable rate mortgages are likely to see an increase in their payments. On a mortgage of £150,000 with a variable rate, a rise in interest rates from 0.50% to 0.75% is likely to increase annual costs by £224 according to the BBC. 

For a mortgage balance of £75,000, there may be an increase of £112 per year, and on £250,000 the increase is likely to be £374 per year according to figures from Nationwide. 

Currently around 4.7 million households are on fixed rate mortgages. For those on fixed rate mortgages, the payments of course won't be rising until the end of their current terms. Once the term is over, they could see an increase in monthly payments, although that depends a lot on the deal chosen, as homeowners may be able to find better rates with another lender. 

What will it mean for the property market in Tameside?

The majority of the coverage of the interest rate rise comes from a national perspective, focusing on the country as a whole, with a bias towards London, however the impact of changes like this can be different in different parts of the country, so Fraser St James' Carl King stepped in with his thoughts:

"What impact will it have on the property market? Whereas the London and South of the country's market is in the doldrums, the market in the North of England is much more active. I believe that with the Brexit uncertainty and recent stamp duty rises, today's interest rate change will have little extra impact on the Tameside housing market. In my professional opinion, prices will remain the same or continue on an upward trend."