1. Don’t panic if you’re about to borrow money.
Loan rates are unlikely to get cheaper following this news, but it’s important you don’t panic buy an unsuitable product to avoid a rate increase.
If you’re borrowing, make sure you have checked our best buy loan comparison tables or used our eligibility checker to find the best loan for you.
2. Check if you’ll pay more on your existing loans.
Loan rates are often fixed, so don’t get ‘the fear’ But if you’re not sure, check your loan isn’t on a ‘Variable’ rate. If so, repayments may go up, so you’ll need to plan for this.
3. Get the best rate for your savings.
If you’ve got savings make sure you’re getting the best rate - it’s like getting paid to do your research. Last time the base rate increased, only half of the lenders passed on the increase, so it’s on you to make sure.
First check your savings account to see what interest rate you’re getting now. Then check if your lender has a better deal on offer. A lender may introduce a new saving rate as a separate product, meaning you may have to move your savings across, rather than automatically getting the rise.
Lastly, check if a different bank is offering a better rate elsewhere using a comparison site. If so, move your money!
Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.