Bank of England’s interest rate rise could leave you £500 lighter — plus find out how to win £5,000 with Sun Savers
DECISION-MAKERS at the Bank of England could choose to raise interest rates for the first time in more than ten years on Thursday.
An expected rise of 0.25 per cent could mean that some mortgage customers see their annual bill rocket by more than £500.
Sun Savers takes a look at the ways a rate rise could affect you.
- Homeowners: Those households with a tracker mortgage or standard variable mortgage will likely see a rise in their monthly payments, and it could add up to a lot over 12 months.
Money expert Andrew Hagger says that on a £200,000, 20-year variable deal, rising to 3.99 per cent, the mortgage would rise from £1,184 to £1,211 a month, or £324 a year more, if the increase is fully passed on to the customer by the lender.
For a £350,000 mortgage, payments would increase from £2,072 to £2,118 a month — £552 a year more than what they’re currently paying.
Those on fixed-term deals will not be impacted and if you don’t want the worry of potential future rises, then you could consider switching to a fixed deal.
The Yorkshire Building Society says it has already seen customers take action, with an almost doubling of fixed-term applications since August.
Andrew said: “If you are on a tight budget it’s definitely worth looking around for a fixed-rate mortgage.“It will give you the peace of mind that your biggest monthly outgoing isn’t going to go up any further.”
- Borrowers: Borrowing money on a credit card will also get more expensive — but not by much.On a balance of £5,000, you’ll pay an extra £1 per month in interest.
Some providers like Barclaycard will automatically move their rates in line with base rate.
Others will follow suit but not necessarily straight away, so keep an eye out for a letter notifying you of any changes.
- Savers: It’s been a tough decade for savers, as the record-low rates have given them a rubbish return on their savings.
So a rate-rise will be welcomed — though it’s only a very small first step.
A 0.25 per cent rise on a balance of £2,000 will gain an extra £5 in interest, not a lot to shout about.
And you’ll need to check you are getting the raise as in the past not all banks and building societies have passed the full rate increase on to their customers.
Did you know?
- 42 per cent - proportion of homeowners who have never had a rate rise, according to Which?
- 0.25 per cent - what the Bank of England base rate currently stands at
- 11.1million - the number of mortgages in the UK
Get all toasty with Heston
SAVE BIG: Become a breakfast pro with the Sage by Heston Blumenthal Luxe BTA735SLQ two-slice toaster.
It has six different bread settings. Now £89, was £129, from .
Offer ends October 31.
SAVE: £40
SAVE SMALL: Mix Aperol with prosecco and a splash of soda in a wine glass, to create Italy’s favourite aperitivo, the Aperol spritz.
It’s the perfect way to start the evening. A 700ml bottle of Aperol, now £12.62, was £15, in Morrisons.
Offer ends January 7.
SAVE: £2.38
SAVER SPOT 1: Argos has slashed toy prices, including on some of their top picks for Christmas.
For example, there is ten per cent off the SoundMoovz Bandz and £20 off the Transformers Autobot Sqweeks.
Head to a store or to .
Offer ends on Tuesday so be quick.
SAVER SPOT 2: The new Mix and Match Meal deal for two at the Co-op means you can get a main and two sides for just £6 for two diners and save nearly £4 on the most expensive combinations.
Offer ends November 7.
- PRICES correct at time of going to press. Deals and offers subject to availability.
Win £5,000 cash
WITH winter just around the corner and the autumn chill forcing us to put the heating on, now is the time of year our household bills start to increase.
But The Sun is here to help as we’re giving you the chance to win £5,000 to put toward your bills for a year.
TEN lucky winners will get £5,000 cash each.
To enter, simply join Sun Savers today. Then collect ten Sun Savers codes before Tuesday, October 31.
Today’s code and how to join Sun Savers is on further down. Once you have your ten codes, you will be prompted to enter. Make sure you enter by Monday, November 13.
TERMS AND CONDITIONS: Collect TEN Sun Savers codes from the 18 printed in The Sun between today, Saturday, October 14, and Tuesday, October 31, 2017. Last chance to join in is Sunday, October 22. Competition closes at 23:59 on Monday, November 13. Over-18s, residents of the UK only. One entry per person.
Winners will be selected at random from all valid entries. There will be TEN winners of £5,000 only. Allow 28 days from entry closing for the draw to take place. Winners will be notified within seven days. No cash alternative to prize in whole or in part. Prize is non-transferable. Your information will only be used for the purposes of this competition. Promoter is News Group Newspapers Ltd.
Not open to staff of the Promoter and promotional partner or their families. The winners will be required to participate in reasonable publicity relating to this competition. The Editor’s decision is final.
Fancy a free fiver?
YOU can get FREE cash with super Sun Savers just for buying your favourite paper.
Our brilliant new rewards club will pay back our most loyal readers.
Just pick up the paper each day to collect your Sun Savers codes and we will GIVE YOU £5 when you have collected 28.
This isn’t a one-off and there is no limit to how much cash you can save.
For every 28 codes you enter, we will give you a fiver. So over the course of a year, that could add up to £65.
We are keeping it super-simple. You don’t have to enter codes from consecutive days, so don’t worry if you forget a day or two.
Download our easy Sun Savers app and quickly scan your code using your smartphone. Or go online and enter your code at .
What is Sun Savers? Here's everything you need to know about our new rewards club
To get you on your way, join today and we will put a bonus £1 in your Sun Savers wallet tomorrow. And the good news doesn’t stop with free cash.
With Sun Savers, we give you the best hacks, deals and tips to save money every single day.
TO JOIN: Don’t worry, folks — joining takes just 30 seconds, in three steps.
All we’ll ask of you is your name, your date of birth and an email address to get you on the way to your first crisp fiver.
You can choose to save or cash out straight to your bank account or instantly with Paypal.
Don’t delay — join Sun Savers now!
We bust the myths about Sun Savers
- It’s not real cash. It will just be vouchers or points.
WRONG – it IS real cash. - You have to enter the codes on consecutive days.
WRONG – each code is valid for FIVE weeks, enter them whenever you want. - It’s a one-off promotion.
WRONG – Sun Savers is for ever. - It’s just a joining offer.
WRONG – you will get a fiver for EVERY 28 codes you enter. - It’s not for me as I only buy the paper a couple of times a week.
WRONG – it doesn’t matter how long it takes you to get 28 codes, you’ll still get the fiver. - There will be lots of hoops to jump through and lots of catches.
WRONG – register with just your name, email and date of birth, start entering your codes and you are good to go. - It will take ages to receive the fiver.
WRONG – just link your bank account and the money will be in your account within three to five working days. Or do it via PayPal and get it instantly.
Two free tickets for Madame Tussauds worth £70
HANG out with the cream of the celeb world with our two FREE tickets to Madame Tussauds London, worth £70.
You can take selfies with wax figures of top famous faces and characters, from Kim Kardashian and the Queen to Star Wars’ Han Solo and C-3PO.
Or explore 400 years of London’s history on a taxi ride.
Plus you can enjoy three fantastic new attractions for 2017.
Face your fears in the Alien: Escape experience, then explore the jungles of Skull Island, pose with a wax figure of Tom Hiddleston and confront the mighty King Kong.
Then you can take the hot seat alongside will.i.am in The Voice Experience to see if you have what it takes to be a talent show judge.
Make sure you join Sun Savers to claim your two free tickets to Madame Tussauds London.
It’s the quickest way to book, so you’ll get first dibs on the best dates.
How to get this offer
EVER wanted to grab a selfie with David and Victoria Beckham? Well, now you can by claiming two FREE tickets to Madame Tussauds London, worth £70.
We’re offering you the chance to get up close and personal with some of your fave celebs, past and present, with this amazing deal.
Plus you can get tickets for the Coca-Cola London Eye for just £9.50 per person when you book your Madame Tussauds London tickets.
To claim your two FREE tickets, download the Sun Savers app or register at sunsavers.co.uk and collect NINE Sun Savers codes by Tuesday, November 14.
For more details, see .
T&Cs apply. Subject to availability.
- PLUS, get tickets to the Coca-Cola London Eye for just £9.50 each.
