Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites.
Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. For avoidance of any doubts and to make it easier, you may consider any links to external websites as sponsored links. Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


For the 51st month in a row, the Bank of England has elected to keep interest rates at 0.5%, an all-time low. Loan applicants with a good credit report (visit http://www.creditexpert.co.uk/credit-report.aspx to find out yours) continue to take advantage of cheaper lending rates, fuelling the property market and stimulating the economy.

However, these low interest rates will not be around for much longer. Mark Carney, the governor of the Bank of England, said last month that he expects to see a gradual increase of the base rate, before interest rates revert to a “new normal” of 2.5% in 2017, cited here.

If rates are set to incrementally increase by 2% over the next three years, it is safe to assume that the first rate change will be coming sooner rather than later.

This is good news for anyone who has a savings account with a UK bank – they are likely to pass on the interest rises to savers who are not locked into fixed term saving accounts.

For borrowers, however, it is a different story.

Anyone who has taken out a loan, credit card or mortgage during the last few years will have benefited (whether they realise it or not) from particularly competitive lending deals. The 0.5% base rate makes it cheaper for banks to borrow money from the Central Bank and these savings have been passed onto the customer, and applicants with a favourable credit report could access mortgages of around 2-3%.

But when interest rates rise, so will lending charges. According to a new survey by the HomeOwners Alliance and Myhomemove, more than one in three UK homeowners are afraid that they won’t be able to afford their mortgage payments and other debts when the interest rates start to go up again.

“Homeowners are already really struggling to make ends meet, and millions could be pushed into real financial hardship when interest rates start to rise,” said Paula Higgins, Chief Executive of the HomeOwners Alliance. “It shows just how severe the cost of living crisis is that a rise in interest rates could lead to some homeowners struggling to afford food or being forced to sell their homes.”

While the interest rate rise is expected to come in small steps of 0.25%, these increases will quickly add up. The Office for Budget Responsibility (OBR) has estimated that an increase of 2.5% in the base rate would mean that homeowners with a £150,000 repayment mortgage would end up paying an extra £230 every month.

There is no way to escape the rising interest rates, but borrowers who are concerned about meeting repayments in the future can act now by building a good credit report.

A high credit score can help people to access better mortgage deals, personal loans and credit cards even after the base rate goes up.

Experian can offer insight into your current credit report rating, and what you can do to improve it in the future so that you can access better deals on your mortgage and other loans.