After months or possibly years even, of speculation, hints and unclear, throw away comments from Governor Mark Carney and the Bank of England, the official bank rate has risen from 0.25% to 0.50%.
The decision to increase the rates is the first seen in over 10 years, since July 2007.
According to the reports on the BBC website, the decision will result in over 4 Million households seeing an increase in mortgage interest payments once the rise comes into effect.
But by how much?
Under the same article reported by the BBC “Of the 8.1 million households with a mortgage, 3.7 million – or 46% – are on either a standard variable rate or a tracker rate – which generally move with the official bank rate.The average outstanding balance is £89,000 which would see payments increase by about £12 a month, according to UK Finance.”
It’s not all doom and gloom
Markets reacted positively lifting the FTSE 100 and savers will see a marginal increase in their returns. This is coupled with an expectation for better annuity rate deals, which as of late, have struggled to present value for money.
If you wish to seek further clarification on todays decision and discuss how it may impact you, give our offices a call and arrange to speak with an adviser. All of our initial meetings are complimentary with no obligation to become a client or move forward with our recommendations.
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