6th November 2017
Davenham holds rates despite rise in interest
In a shock announcement, the Bank of England has raised interest rates for the first time in more than 10 years, and it is expected to rise twice more over the next three years.
The official bank rate has been lifted from 0.25% to 0.5%, leaving almost 4million households facing higher mortgage interest payments should they have a variable rate mortgage. It’s not all bad news though, as those saving money or considering buying an annuity for their pension will likely see better deals.
The Monetary Policy Committee have said that the decision to leave the European Union is having a "noticeable impact" on the economic outlook, and as a result interest rates are expected to hit 1% over the next few years of negotiations.
The Federation of Small Businesses said some would struggle to "absorb more hikes in the short term" and we couldn’t agree more, which is why at Davenham, we will not be increasing our rates to reflect the rise. As uncertainty around Brexit grows, we are committed to supporting SMEs and will continue to provide dedicated finance solutions to encourage growth in the small business community.
If you have any queries as a result of the interest rates rise, or feel you would benefit from our support, please give a member of our friendly and experienced team a call on 0161 832 8484.