With interest rates continuing to stay historically low , could it now be time to consider when they will once again rise?
Larger purchases, for example buying a car or paying for a wedding, are not always easy to finance, that’s why many people consider taking out a loan.
At present the lowest rate available is 3.2 %, so the extra repayments made on a loan of for example £20,000, if you’ve arranged to pay the loan back over six years, would be £1,979.
Compare this to a loan of £20,000 with an interest rate of 10.5 % and you will see a huge difference in the amount you pay. The loan of £20,000 would cost in total £26,697, equalling an extra £4,718 over six years.
Can the Bank of England keep the interest rate so low? As hard as it is to predict with certainty what the future holds, with Brexit negotiations and an unstable new government it could be seen as a wise time to lock in the low rate now before interest rates start to rise.
So how might a Bank of England interest rate rise affect me?
FreedomFinance.co.uk have produced the following infographic showing you how you can beat the rate rise: