If you’re a homeowner with a variable rate mortgage, you will no doubt be lamenting yesterday’s decision by the Bank of England to raise interest rates. The 0.25% rise means that UK interest rates are now set at 5%, the highest they have been for five years, and will certainly result in an increase in repayments for some borrowers and mortgage holders.
However, before we get too caught up in the down side of the rate rise, we should remember that this is very good news for some – all of us savers! Savings accounts are usually linked in some way to the base rate, and so any increase will lead to a rise in interest rates for your savings, too….
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