Media comment: Money Advice Service comments on Bank of England Interest Rate Rise

Responding to the BoE rise in interest rates John Penberthy-Smith Customer Director said:

“Over the last ten years, borrowers have benefited from historically low interest rates. Today, as the Bank of England increases the base rate, it could affect the cost of your mortgage and how much you earn on your savings, so it’s the perfect time to take stock of your finances and ask yourself what does the rate rise mean for me and my money?

“If you are a saver, you may be able to find accounts that offer higher interest rates. If you have a mortgage, whether it is fixed or variable, we recommend that you take action to find out what the current rate is and when the contract ends. This will enable you to review your options and secure the lowest rate possible.

“Whatever your situation, it is important to think to the future for other occasions that could impact your finances. These could include a further interest rate rise, starting a family, buying a new home or even the loss of a job. If money starts to become a problem, for example, if you use credit to pay essential bills or fall behind on payments, it’s important to remember you don’t need to deal with it alone. We are here to offer you free impartial guidance and tools to help you make the right money management decisions. Confidential, anonymous and free debt advice is also available across the UK and the debt advice locator tool has all the information you need to make the first step.”