You will no doubt have noticed that UK interest rates have risen sharply over the last year, the Bank of England have raised rates 13 times to try and reduce inflation. The base rate is now 5.00% – the highest since 2008. With that in mind, here are a few things to think about.
Mortgages
If you have a mortgage which is on a Fixed Rate coming to an end in the next 12 month you are likely to see the monthly cost will increase.
It is often possible to make a decision about what you want to do with your mortgage fixed rate several months before its expiry i.e. you do not have to wait till the end of the fixed rate deal.
If you need any help / advice around your mortgage we can introduce you to a local independent mortgage adviser.
Savings
If you have savings, you should check the rate of interest your Bank is paying on your account. Many major Banks have not passed on the interest rate rises to their customers and it may be advisable to either change your account or move the savings to another provider.
- The top “instant access” accounts are offering over 4.00%
- Some providers are offering 6.00% on Fixed Rate Bonds
Obtaining a good rate of interest can make a real difference, as an example, £20,000 paying 1.20% would earn £240 interest after 1 year but at 6.00% it would earn £1,200
If you would require any further help or advice, please contact David Winnard.
*Source: Moneyfacts.co.uk
*information correct as at 18th July 2023
Thomson Hayton Winkley Financial Services does not provide advice on mortgages.
Your home may be repossessed if you do not keep up repayments on your mortgage.