Bank of England Interest Rates 2022 November, So we’ve just had the latest announcement from the bank of England on the interest rate the base rate of interest which influences so much out there while savings our mortgages our borrowing all these kind of things and as anticipated there has been yet another hike and this is a biggie the largest single increase since 1989.
Percentage of Interest Rate Bank of England
Interest rates of Bank of England In 2022, It has jumped up from 2.25 to 3 that’s a 0.75 percentage Point increase really really really big one there. And if you look at then over the last year the interest rate started increasing in December of 2021 so we’re almost a whole year around 11 months in we’ve seen a jump of 2.9 from 0.1 to 3 percent that is as you can tell big.
Although our rate is still relatively low compared to where we were prior to the crash in 2008 this is still much much higher than we’ve had since then and this is going to be a lot of this is we’ve been telling you this every single every six weeks every time there’s one of these announcements this is going to have quite an impact on so much of our finances before I get into how this impact your savings your mortgages and other borrowing things.
It’s worth just telling you a little bit more about today’s announcement exactly how that decision came about and some of the other kind of assumptions that the bank of things are are using to base that decision to to make that increase, So the vote this time there are nine people on the monetary committee the monetary policy committee who decide on this and the majority whoever the biggest sort of chunk of the vote that’s what happens this one was quite a comprehensive in favor.
Fixed Interest Rates
You know not worth going through cost you too much to leave uh that mortgage to go on to one of the new deals so just be really really careful there interestingly. We’re talking about fixes if you are looking for a new deal right now some of the longer term fixes might actually be cheaper than the two year five years and ten years seven years whatever it might be.
They might actually be cheaper now if you are considering going for a longer fix that might not be a bad thing if it gives you security if you know if you’re worried about rates going up again. If you know what I can at least afford this when I’m locked in at this rate and it will be cheaper than a shorter one one thing you do need to consider though with any kind of fix but particularly longer ones is they will have those exit fees again there if you do try to leave early.
If you are forced to move your house you might not think you’re going to move but so many things come into our lives that means we have to relocate or downsize or whatever it might be to just be extra aware that that is a condition that comes into some of those longer picks. Even if they do give you some certainty or be it at pretty high rates right now a lot to pack into this one.