The Suffolk Building Society and Market Harborough Building Society have recently announced an increase in their home loan interest rates. This news has been met with mixed reactions from borrowers, as the rate increase could mean higher monthly payments for those with existing mortgages.
The Suffolk Building Society has increased its home loan interest rate from 2.99% to 3.19%. This is the first time the Society has increased its interest rate since 2015. The Market Harborough Building Society has also increased its rate from 3.09% to 3.29%.
The increase in interest rates is likely due to the Bank of England’s decision to raise the base rate from 0.5% to 0.75%. The Bank of England’s decision was made in response to an increase in inflation, which is currently at 2.4%.
For existing borrowers, the increase in interest rates could mean higher monthly payments. However, the increase is not expected to be significant, and borrowers should contact their lender to discuss their options.
For those looking to take out a new mortgage, the higher interest rates could mean that they will have to pay more each month. However, it is important to remember that the current rates are still relatively low compared to historical averages, and borrowers should shop around to find the best deal for them.
The increase in interest rates is likely to be welcomed by savers, as it could mean higher returns on their savings accounts. However, it is important to remember that the Bank of England’s decision to raise the base rate was made in response to an increase in inflation, and savers should be aware that their returns may not keep up with inflation over time.
Overall, the decision by the Suffolk Building Society and Market Harborough Building Society to increase their home loan interest rates is likely to have a mixed effect on borrowers and savers. Borrowers should contact their lender to discuss their options, while savers should be aware that their returns may not keep up with inflation over time.