The Interest rate rise how are you affected
The Bank of England has raised interest rates from 0.5% to 0.75%
Why have they done this well consumers are spending more
The economy is getting stronger
Employment levels in Wolverhampton the midlands and indeed the UK as a whole are fairly strong
There is the potential for wages to rise also all these factors have played a part in the banks decision
The Bank’s main priority is to keep the rising cost of living – inflation – under control.
So it has decided to raise the base rate which is how much the banks pay savers and of course how much they charge borrowers in interest
So a rise in the Bank rate is good for the UK’s 45 million savers but bad for borrowers.
Should be panic, well no no…. rate rises will tend to be gradual and over a long period of time
Yes there are over 3.5 million family’s on a variable rate mortgage
However its not too late to change to a fixed rate product to fix your payments now
Bad news for savers sorry but interest on savings accounts unlikely to be higher than 0.5%
Now could be a good time to fix the rate before you end up paying more than you need to.
At the moment we are offering free mortgage advice so if you have any questions or are concerned about the impact of interest rate rise on your mortgage contact us on 01902 213201