With changes to the Bank of England base rate, these are the views from one market commentator on what might happen to interest rates.
Following the Monetary Policy Committees (MPC’s) decision to raise interest rates yesterday the below comment is from 7IM.
Justin Urquhart Stewart, Co Founder and Head of Corporate Development, 7IM:
“Today’s rate rise – the first in ten years – is a new economic era for the new millennial generation, many of whom have never experienced a rate rise before and who have had little choice but to embrace debt. My message is not to panic – today’s rate rise merely reverses last year’s emergency cut following the referendum vote.
“Let’s also not forget the older generations – the savers who outnumber the borrowers. This rise will be tiny, especially with inflation at 3%, but any little will help. The old generation suffer because someone changed the rules and nobody warned them. Saved all their lives to live off the interest, only to find that the returns are paltry. However the new rates are still negative rates!
“This is also a klaxon call to mortgage holders that their monthly payments will inevitably be rising at some stage. Plan now to manage future pain.”
How Anstee & Co can help you with interest rate changes.
If you do not feel that you are getting the best return from your savings then we may be able to help. Our team of independent financial adviser may be able to offer you an alternative solution.
If your mortgage is on a standard variable rate (SVR), tracker or variable rate then now may be the time to look at fixed rate deals. Our team of independent mortgage adviser will be able to look at the options for you.
Why not arrange a meeting today. We have offices in Birmingham, London Stamford and Kettering. Our expert financial advisers cover Lincolnshire, Warwickshire, Bedfordshire, Northampton and the West Midlands. We also make use of meeting rooms in Northampton, Wellingborough, Towcester, Bedford and Warwick.
Meetings can also be arranged at your home or place of work at a time that is convenient to you. The first meeting is free so why not contact us today to see how we can help to design your financial future.