In general, a 0.25% Bank of England rate rise means that the central bank has increased its benchmark interest rate by 0.25% to 4.25%.
This could have several effects on your finances, including:
Mortgage payments: If you have a variable rate mortgage, your monthly payments may increase because the interest rate on your loan is tied to the Bank of England rate.
Savings accounts: If you have a savings account, you may see a small increase in the interest rate you earn on your savings. However, this increase may not be significant.
Credit cards and loans: The interest rates on credit cards and loans may also increase, which means you could end up paying more in interest charges.
Exchange rates: A rate rise could potentially strengthen the pound, which could make it more expensive to travel abroad or buy imported goods.
It’s important to note that the exact impact on your finances will depend on a variety of factors, including the type of financial products you have and the terms of those products. It’s always a good idea to speak to a financial advisor if you’re concerned about how a rate rise could affect you personally.
Get the latest updates and be the first to know when Moneybrain goes live!