02 August 2018

People must stress test their finances in light of BoE interest rate hike

3 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Personal Finance Specialist

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Commenting on the Bank of England’s decision to raise interest rates Helen Morrissey, Personal Finance Specialist at Royal London said:

“This rise was widely expected and serves as a timely reminder for people to check how robust their finances are. Many people have already taken action to secure their mortgage payments with over 90% of mortgage lending in Q.1 being on a fixed term basis1 so they will be sheltered from any increase until their mortgage deal ends. However, there are still millions of homeowners on variable rates who will need to stress test their finances to make sure they can afford their increased mortgage payments long term. Homeowners need to take advice and consider remortgaging as large savings may be available.

“Interest rate rises should be good news for savers, but unlike mortgage lenders who increase their rates quickly, the same cannot be said for savings rates which often remain static or increase only slightly. Again savers should take the opportunity to look at what is available in the market and see if they can get a better savings rate than they are currently on.”

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For further information please contact:

Helen Morrissey, Personal Finance Specialist

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.