Despite some banks offering high-interest rates, nothing compares to the level of inflation Britons are facing, putting pressure on borrowers and millions of homeowners.
He suggested that savers should be considering ways to make their money grow in real terms, even with interest rates increasing.
He added: “From locking cash away for longer, to accepting some investment risk and seeking advice from a professional adviser, now is the time for savers to take matters into their own hands.”
According to research by TotallyMoney and Moneycomms, those with a house costing £270,000 (75 percent LTV) could see their monthly payments increase by an extra £26.
This means customers will be forking out an extra £482 each month when compared to December 2021 — just before the series of hikes began.
Alastair Douglas, CEO of TotallyMoney said: “At its current level of 10.1 percent, inflation remains five times higher than the Bank of England’s target — giving the Monetary Policy Committee more reason to keep hiking the base rate.
“This signals double trouble for millions of homeowners, who in addition to covering the increasing cost of everyday essentials, are also needing to fork out thousands of pounds more each year to maintain mortgage repayments. And this is while wages remain stagnant.”
Mr Douglas suggested that Britons who may be struggling with the rise should contact their lender and ask for support.
This won’t impact one’s credit score, however, missed payments can in the worse cases lead to court action and even repossession.
Despite the consequences for mortgage holders, savers may be enjoying the best returns on cash savings for more than a decade with these rate rises.
Source: Expressnews.co.uk