UK interest rates rise for the first time in ten years...

[MrLuchador]

Posted on behalf of Coxy

https://www.theguardian.com/busines...decision-mark-carney-pound-ftse-business-live

Whilst this may be welcomed by savers....those with mortgages will of course feel the pinch. A whole generation has never known a rise at all.

I'm in that generation, and also not had a wage rise in years thanks to the public sector pay cap...so I hope this (tiny) increase is a sign of how slowly it will rise again...

 

[LabouredSubterfuge]

Arranged a decent term fixed rate on my mortgage earlier this year.

 

[NekoFever]

Locked my mortgage rate in for another two years on Monday :)

 

[Frankfurter]

The BoE is in a very difficult situation. Inflation is too high, but there are downward risks for the economy and its current growth rate is only good for a growth rate of roughly 1.5%.

 

[cabot]

I would be surprised to see this be a boon for savers.


The rise is so low and savings rates on most savings accounts are already a joke, there's no incentive to save right now, I doubt this will change due to this rise.


Savings accounts were crap before the Brexit vote, this is merely reversing the change made since.

 

[Cub3h]

I'm still 3.5 years away from remortgaging and by that time I should be under 50% LTV (down from 85), so I should have a decent buffer against interest increases.

Hopefully this boosts the value of the pound a bit, going on holiday this year was painful with the crappy pound :/

 

[cabot]

My mortgage is fixed until October next year, where I plan to sell and move in with the SO who also has a fixed term till early 2018.


Who knows what the situation looks like then though.

 

[Dan]

It was a long time coming - I just hope it doesnt go up further by the time I have to remortgage in August..

 

[Kodama4]

The rise is tiny, it will barely affect savers, might pinch people with mortgages. This is all about stopping inflation and increasing the strength of sterling.

 

[Coxy]

The rise is tiny, it will barely affect savers, might pinch people with mortgages. This is all about stopping inflation and increasing the strength of sterling.

Click to shrink...

Yup.

I'm fixing mine for the next 5 years - gives me the security I need right now. Will be a shame though as I am on the base variable rate which has a few advantages.

 

[Deleted member 22407]

Well that means the mortgage on my BTL property will go up. We were not able to sell and had to rent it out, when you switch to a BTL mortgage with Nationwide they do not let you take a mortgage product and just get stuck on the standard variable tracker :( .