UK interest rates rise to 5.25% - what it means for savings, mortgages and annuities

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Today the Bank of England raised the interest rate to a 15 year high. Here’s what the 5.25% interest rate could mean for your savings, mortgages, and annuity rates.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

3 August 2023

As widely expected, the Bank of England (BoE) raised the base interest rate another 0.25% to 5.25% in a move that might further squeeze household budgets.

The good news is that inflation is falling — with the recent drop from 8.7% to 7.9% proving far sharper than expected. But it is still above the Bank’s 2% target and there’s still a long way to go, so another interest rate hike could be in the pipeline.

This article isn’t personal advice. If you’re not sure what’s right for you, seek advice.

Today’s rise piles more misery on homeowners with those on tracker mortgages seeing overnight rises. Standard variable rate mortgage holders may find their rates move up slightly too but, with already strained budgets, any increase is