Bank of England increases interest rate

The Bank of England has raised its base rate from 0.1% to 0.25%, the first increase in three years, to try and tackle growing concerns over inflation.

While the rate has increased by only 0.15%, it will add to financial pressure on households with variable-rate mortgages and hit firms with higher borrowing costs.

This could be a good time to look at the type and levels of your debt, as well as your business costs. If further increases are on the horizon, the impact of waiting could be worse than sorting your finances now.

If you have concerns about the change on your position, please get in touch with your usual EQ contact or call one of our offices.