Cast your minds back, readers, into the mists of time. All the way back to 2008, when the credit crunch was at its, er, crunchiest.
To arrest the UK economy’s seemingly inexorable slump into oblivion, the great minds at the Bank of England dropped the base rate to 0.5%, and it’s remained there ever since. It’s made for rather excellent deals on borrowing for loans and mortgages, but lousy returns on savings.
But wait! What’s that a-stirring? Well, it’s the base rate, and if you believe the hunky supremo at the Bank of England, Mark Carney, it’ll be on the move by the end of the year, continuing to head gradually upwards over the next three years, peaking at around 2.55%. To put that in perspective, the base rate has been at an average of 4%, for the past 300 years or so.
To get some further insight, we interrupted Gocompare.com’s resident mortgage expert Matt Sanders as he was perusing the Financial Times with his constitutional coffee and croissant to get the score.
“This news means that we may start to see the best of the best rates disappear. So, if you spot a decent fixed rate and you’ve made sure that it makes sense to switch after you’ve calculated the penalties and early exit fees, then it might make sense to go for it. Some lenders might start to withdraw their ultra-low fixed deals ahead of any rise, so get hunting,” opined Matt.
There could be a further knock-on effects too, with landlords looking to offload buy-to-let properties they’ve been sitting on.
“For those looking to chance their luck and wait to see what this rate rise does to the buy-to-let-market, they may find some twitchy landlords looking for a quick exit and snap up a bargain,” winked Matt as he slathered a dollop of Bonne Maman black cherry jam onto his buttery morning treat.
News in Brief
‘Get Rich Or Die Tryin’ hitmaker 50 Cent has allegedly filed for bankruptcy.
A semi-pro football player has ended up having to pay a whopping £11,000 to Aviva after he’d made a £2,000 whiplash claim, only to have ‘taken to Twitter’ to boast about his own performance on the pitch shortly afterwards. “This case highlights how a minor claim can be seen as an open-goal for fraudsters,” quipped Dave Lovely, Aviva global claims director.
The Competition and Markets Authority has blasted the ‘confusing and misleading’ offers of supermarkets.
Money Shot Letters
To whom it may concern,
As an avid enthusiast of both ball sports and weekly columns tenuously linked to financial issues, I was positively ecstatic to see the topic of last week’s Money Shot. But imagine my surprise when for once I didn’t side with Covered mag: in my humble opinion there wasn’t enough swearing in Wimbledon this year.
Shouting expletives and throwing a ‘mantrum’ as you so put it, is just passion for the game. We don’t all want our athletes to behave like robots. Would you prefer them to bellow “gadzooks”? Stop living in the Victorian ages, Covered mag.
And another thing: Boris Becker is strawberry blond, not ginger!
Letitia Honeysuckle, Chudleigh, Devon
Join us next week for another spittle-flecking edition of the Money Shot. Until then, send us your letters.