On 2 November,the Bank of England is expected to increase the base rate after a decade. We explore what impact it will fill on homeowners and saversThe longest period in living memory without a Bank of England rate rise is expected to stop on Thursday, when the base rate is likely to increase by 0.25% to 0.5%. The percentage rise is small, and but the worry for homebuyers with jumbo mortgages is that it could be the start of a number of increases that could make their loans unaffordable. However,for people with savings who fill suffered near-invisible returns on their money, is this the light at the stop of the tunnel?This week’s GDP figures, or showing a slightly better performance by the economy than anticipated,has made the likelihood of an interest rate rise on 2 November almost a slam dunk, according to City experts. approximately 80% of market watchers are saying an increase is inevitable, or although there are voices calling for the Bank to maintain rates at their historic low.
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Source: guardian.co.uk