3 Reasons you should care about the Interest Rate Rise.

3 Reasons you should care about the Interest Rate Rise.
Written by Mark Grimley
Published on 14th August 2018
Updated on 9th December 2019
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The suits at the Bank of England raised Interest Rates to 0.75%. So far, so boring right? But there are three important things that could affect you:

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!

Even with a saving rate increase, it can save you money if you pay off your debts instead. Check out our saving vs get debt free guide.
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Mark Grimley
Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

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.