Bank of England Holds Rates Steady - What It Means for Mortgages, Savings, Pensions and Consumers
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Bank of England holds interest rates at 5.25% for second time, after 14 previous increases. This may mean more affordable mortgages but lower savings rates.
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Savings rates have fallen from summer highs above 6%, but there are still some fixed-rate accounts paying decent interest. Worth locking in while still available.
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Mortgage rates have been falling, with average 5-year fixed deals now 5.36% versus 5.97% a year ago. But rock-bottom deals are unlikely to return.
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If rates stabilize, pensions may benefit from less market volatility. But good annuity rates may be limited as interest rates level off.
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Consumers should shop around, move quickly on good deals, and watch for hidden fees. Peak rates may have passed but some bargains remain.