As expected, the weekend’s financial news focused primarily on last week’s decision by the Bank of England to increase the base rate for only the second time in a decade.
Most looked at the impact of this change on borrowers, savers and investors. The Times reported on recent figures by UK Finance, which reveal that more than half of mortgaged homeowners have taken a fixed rate deal to protect themselves against such fluctuations.
There are still around 3.5 million customers sitting on their lender’s Standard Variable Rate, however, and while some banks and building societies were quick off the mark in announcing their increases, many have yet to make their decision. You can check our SVR Watch to see if your lender has reacted to the rise yet.
With the potential for further interest rate hikes, experts urged borrowers to act quickly if they can. Both the Sun and the Guardian looked at the increase in demand for 10-year fixed rates, as borrowers seek out longer-term security at today’s prices. Rates on these deals have fallen and the gap between 5 and 10 year rates has dropped significantly as lenders compete for business.
If you are considering a long term fixed rate, it’s important to be aware of any tie-ins or restrictions associated with the deal, and think about any changes in circumstances that might occur in the foreseeable future.
What the papers said about rising rates