Property News · October 28, 2017

The looming interest rate rise: how it will affect you


On 2 November, the Bank of England is expected to increase the base rate after a decade. We explore what impact it will have on homeowners and saversThe longest period in living memory without a Bank of England rate rise is expected to end on Thursday, when the base rate is likely to increase by 0.25% to 0.5%. The percentage rise is small, but the worry for homebuyers with jumbo mortgages is that it could be the start of a number of increases that could make their loans unaffordable. However, for people with savings who have suffered near-invisible returns on their money, is this the light at the end of the tunnel?This week’s GDP figures, showing a slightly better performance by the economy than anticipated, has made the likelihood of an interest rate rise on 2 November almost a slam dunk, according to City experts. About 80% of market watchers are saying an increase is inevitable, although there are voices calling for the Bank to maintain rates at their historic low. Continue reading…

Source : theguardian.com
Read more…The looming interest rate rise: how it will affect you

You may also like...