The Bank of England base rate has gone up from 4.25% to 4.5%, the highest level since 2008.
Martin Lewis has shared how the newly announced Bank of England interest rate of 4.5 per cent will impact on people with savings or a mortgage. The Bank increased the base rate for the 12th time in a row, taking it to the highest level since 2008.
For savers, he said: “Top paying easy access savings accounts will likely rise a tiny bit over the next few weeks . Most big bank savings will continue to pay diddly squat, so check, ditch & switch.” The Bank had previously thought Consumer Price Index I inflation could fall as low as 1 per cent by the middle of 2024 but it is now predicted to reach around 3.4 per cent.
“Those aiming to lock into a fixed-rate mortgage for peace of mind will find average rates have come down slightly over the past month, but as rates average around 5%, this may still be unaffordable for some. The average five-year fixed mortgage rate is lower than the two-year fixed, which may encourage prospective borrowers to lock down their rate for longer.
Latest Martin Lewis News Responding to the latest rate rise, Vikki Brownridge, Chief Executive of StepChange Debt Charity, said: “The steep jump in interest rates we’ve seen over the past 12 months has been a shock to household budgets, compounding financial difficulty for people who are already struggling to make ends meet.
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