Households need to prepare now for the ‘new normal’ of higher interest rates

Industry News | 02/08/18

The Bank of England Monetary Policy Committee has voted to increase interest rates to 0.75 percent, its highest level since 2009.

Jane Tully, director of external affairs at the Money Advice Trust, the charity that runs National Debtline, said:
“Households need to prepare now for what could be the ‘new normal’ of higher interest rates in the coming years.

“This small rate rise will not on its own cause problems for the majority of people, and with most mortgages on fixed rates the full impact on household finances will not be felt immediately. However, we know that even a small increase in costs can be all it takes to push some households with already stretched budgets in to difficulty.
Source: Money Advice trust