Bank of England base rate rise to have quick and strong impact for savers, pensions and home buyers

Plymouth (16/06/22) – Today’s base rate rise from the Bank of England will have a quick and strong impact on savers, pensioners and home buyers, according to national IFA firm Continuum as the firm continues to grow.

The Monetary Policy Committee at the Bank of England announced a 0.25% rise in the base rate today to 1.25% as it looks to battle rising inflation.

National IFA firm Continuum expect today’s rise to have a swift impact on savers, pensioners and those looking to take out a new mortgage.

Martin Brown, managing partner at national IFA firm Continuum, said: “Whilst we have seen several rises to the base rate since December, today’s rise of a further 0.25% to 1.25%, could have a quick and strong impact on savers, pensioners and home buyers.

“Cash savers could be forgiven for thinking that their money will likely see better returns following today’s announcement. However, unless banks start to offer interest rates matching the high levels of inflation being felt across the country, they could still be losing money in real terms. At Continuum we believe that the chances of banks offering rates meeting inflation any time soon continue to be very low.

“Therefore, cash savers may find they would be better off considering putting their money into an investment, such as a stocks and shares ISA account.

“A diversified investment portfolio offers the opportunity for longer-term savers to have the potential to grow their funds above the rate of inflation. The value of investments can fall as well as rise so savers should make sure they get independent financial advice to make sure their money is working its hardest for them.

“Those who are married to the idea of a cash savings account should make sure they shop around for the best deal on their savings account rate as banks gradually pass any increase in the base rate onto their customers.

“With average mortgage rates continuing to rise, today’s announcement from the MPC means the value of getting quality independent advice is higher than ever. Homebuyers and those looking to re-mortgage should seek advice before rates swiftly move higher.

“A good mortgage specialist can get access to the best rates, and one experienced in wider financial advice can also help you get your financial arrangements in order before applying to make sure you can achieve the most competitive rates available for your individual circumstances.

“Rate rises and other measures to tackle inflation mean complications for many aspects of financial planning, but particularly for pensions.

“A client’s pension needs to last the whole of their retirement, which could easily be 20 years long or more, and be enough to pay for care if they need it.

“With further rate rises seeming likely in the near future as the Bank of England continues to attempt to tackle rampant inflation, the best step those affected can take is to seek independent financial advice. A good financial adviser can help you understand the impact of an interest rate rise on your finances, and what action (if any) you should take.”

Editors Notes – About Continuum

Continuum is a modern brand of financial advice. It is a partnership of like-minded Independent Financial Advisers sharing a common passion, approach and commitment to practicing true financial planning.

We are dedicated to providing a modern financial planning experience – one that focuses on the client.

Assets under influence have increased to over £1.52bn

We believe that by creating a three-way partnership between Continuum, the adviser and the client, we also create an environment where each party can only succeed and grow if the other parties also succeed and grow.

Continuum is a trading name of Continuum (Financial Services) LLP which is authorised and regulated by the Financial Conduct Authority. Continuum (Financial Services) LLP is a Limited Liability Partnership

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