The Interest Rates are going up!

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