Posted on 2 August 2018 by
The quarterly Inflation Report sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions.
The Bank of England has raised interest rates to 0.75% - the highest level since March 2009.
The move will increase the interest costs of more than three-and-a-half million residential mortgages that have variable or tracker rates. But it will be welcomed by savers, who could see a lift in their interest rates over the coming months.
Nick Morrey, our Mortgage Technical Manager says “Finally the Bank of England feels the increase they have been attempting for some time is viable. It will have a swift impact on those with tracker or variable mortgages as they are linked or tied to the base rate. However, fixed rates have been far more popular of late so those borrowers will remain unaffected until their products come to an end. New fixed rate customers would be well advised to decide quickly in case lenders are compelled to increase the products they offer as the money markets react to today’s news.”
If you are currently on a tracker or Standard Variable Rate, this could affect how much you’re going to paying each month. We would always recommend talking to one of our expert advisers to discuss what this increase will mean to you and how we can help keep your costs down.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.