The recent rise in mortgage rates is bad news for borrowers and possibly for savers, an expert has claimed.
Following the Bank of England's decision to raise the base rate by 0.25 per cent to 4.75 per cent, many borrowers with a mortgage will find that their repayments increase.
However, savings accounts could also suffer, as several companies have cut their rates, AWD Chase de Vere states.
The company cites the Marks & Spencer's cash individual savings account, which was cut by 0.25 per cent on the 7th July, only to raise it after the base rate was increased.
Alliance & Leicester took similar steps, cutting the rates of three of its savings accounts on August 3rd, stating: "Our savings rates are not directly linked to the Bank of England base rate."
Following the Bank of England's decision, however, the company raised the rates by 0.25 per cent, commenting: "Following the Bank of England base rate change, we will be passing on the full 0.25 per cent benefit to all … customers."
Interest rates bad news for borrowers and savers, expert warns
Interest rates bad news for borrowers and savers, expert warns
Mon, 14 Aug 2006
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