Another interest rate increase from the Bank of England. What does this mean for you?
The Bank of England interest rate has risen from 0.5% to 0.75%. This is only the second increase in a decade but why has it happened and how will it affect you?
The long and short of it is that those who have a variable or tracker mortgage will see an increase in mortgage costs.
The rate increase is borne out of the expectation that the economy is growing stronger. In anticipation of more consumer spending and a potential wage increase, the bank tries to control inflation (the cost of living) by increasing the cost of borrowing money.
There are 3.5 million households on a variable or tracker mortgage rate. Does this include you?
If so, it is a good idea to speak to someone about the best way for you to manage the effect of the increased interest rate. Our mortgage advisers are on hand with FREE INDEPENDENT ADVICE and to answer any questions you may have.
Get in touch on 0191 230 4817.