Interest rates have been cut by the Bank of England for the first time in four years, which will affect mortgage, credit card and loan payments for millions of people across the UK. In an article for the BBC, various individuals detail how the change will impact their lives, including high street retail manager James Willicombe, who hopes it will aid him in his savings for his first mortgage deposit. Anna-Marie Craven has made the difficult decision to place her detached cottage on the market due to her mortgage rate doubling, with hopes that the cut will “stimulate the housing market” and help her find a buyer.
Self-employed gardener Carl Jones has always had overarching savings, owning at least £20,000 in his “zero” bank account at any given time, acting as a savings account. He currently earns around £100 a month from his savings and hopes that it will not massively affect his income. Co-owner of Tukka Tuk street food in Cardiff, Rupali Wagh, welcomes the rate cut as it means her loans will ultimately cost her less. She has also noticed customers expressing a newfound awareness surrounding mortgages and expenses, believing better deals and higher disposable incomes could follow.
The change will not be taken lightly by lenders and borrowers alike, including savers like Carl Jones, who will face a likely reduction in general savings account rates. Despite concerns about the reduced impact of a “small cut” on mortgage rates, it is hoped that lenders will take the Bank of England’s move as a sign to offer customers better deals, aiding individuals seeking to climb onto the property ladder like James Willicombe. Individuals who rely on the stock market for income may also feel the impact, as Rupali Wagh hopes that customers will be relieved of some expenses and will have more to spend at street food locations like her own
Read the full article from The BBC here: Read More