For mortgage owners, tracker rate surfers, and borrowers, this might not be good news, but for savers, this is welcome news indeed. According to the BBC, the official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007.
The move reverses the cut in August of last year – made in the wake of the vote to leave the European Union.
Almost four million households face higher mortgage interest payments after the rise, but it should give savers a modest lift in their returns.
As well as many of the country’s 45 million savers, anyone considering buying an annuity for their pension will also see better deals.
The main losers will be households with a variable rate mortgage. It remains to be seen if things will remain stable for a while or if this will mean financial upheaval for mortgage owners.
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