What today’s interest rate rise means for you

As was widely expected, the Bank of England’s Monetary Policy Committee (MPC) today raised interest rates for the first time in 10 years.

The change is a small one, moving from the all-time low base rate of 0.25% that the MPC moved to immediately following last year’s EU referendum, back up to 0.5%. Nevertheless, this could be a signal of shift in policy from the Bank which may well initiate further rate hikes in 2018 to combat a rise in inflation.

While today’s move is unlikely to have a significant impact on your finances, those on variable rate mortgages could see a small increase in their monthly payments. Payments will not change for those currently on fixed rate mortgages.

Savers may benefit from a small increase in interest paid on their cash accounts, though rates offered through bank accounts remain feeble. Annuity rates may also see a small increase.

If you have any questions regarding your finances, please contact us and we will be happy to help address any concerns you may have.

YOUR HOME MAY BE REPOSSESSED IF YOU NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE