We’re all worried about inflation pushing up the cost of living.
Today the Bank of England helped to stabilise the economy by keeping its base rate of interest at 5.0 per cent, helping to ease those concerns about rising costs.
Some are suggesting that the next base rate cut won’t be until June, and that there may be further cuts towards early 2009.
So with base rates being held this month, has anything really changed?
For those estimated 1.4 million people on very cheap fixed rate mortgage deals who are due to finish their introductory period this year, the stable base rate will hit hard. MoneyExpert.com talks you through the options.
I’m a homeowner
A steady base rate of 5.0 per cent means no change for those on tracker or standard variable rate mortgages.
However, for those on fixed rate deals, who are coming to the end of their deal, you should consider the possibility that your next mortgage will cost you significantly more.
If this sounds familiar and you’d like to shop around for a decent deal, click here to compare mortgages.
I’m a saver
Rates are high, at the highest they’ve been for 7 years – and for another month they’ll stay high.
The Credit Crunch also means that the banks and building societies need cash and so the saving marketplace has become very competitive with a host of high-interest savings accounts.
If you have any spare cash then ensure you put it where it can grow, that means in an ISA or high interest savings account, the last place you want to leave it is in your current account.
Online access makes switching easy and the internet saver accounts often offer some of the best deals. It’s definitely worth spending a few minutes shopping around online to see if you can benefit. Click here to find the best savings rates around.