03 Feb UK interest rates rise to 0.5%
Just announced, the UK interest rates have risen to 0.5%.
This increase sees the base rate rise by 0.25%, but what does it mean for you?
Mortgages
When the base rate rises, lenders are most likely to pass this on to borrowers which means if you are on a variable rate or tracker rate, your mortgage payment per month will go up.
If you are on a fixed-rate mortgage, your price is locked in for the term you agreed and it will not increase. You need to be mindful of when your fixed rate is coming to an end so you can be sure to look around for a good / better deal – or get your mortgage broker to do that for you.
Savings
If you have some savings/investments with a financial institution, you may see a rise in the savings rates, but it is worth checking with them to make sure you are on their best rate or contact an independent financial adviser who has knowledge in savings and investments.
Cost of living
Already at a very high point, the cost of living is set to be impacted further. Supply chain issues, increase in the cost of raw materials, Brexit and additional costs deferred to the endpoint consumer means for more expensive borrowing for individuals, businesses and the government alike.
Just prior to the announcement of the interest rate increase, the cap for energy prices was increased by 54% as well, coming into force 1st April, with a potential further increase in October, which may squeeze some households further.
If you would like to look into the possibilities of a re-mortgage and possibly save your household some money, the helpful and knowledgeable team at Best 4U will be able to help advise and guide you. Please contact the team on 01536 411 144 or email enquiries@best4umortgages.com
No Comments