Martin Lewis news — Expert gives urgent holiday savings advice as he responds to today’s ‘painful’ interest rate rise
MARTIN Lewis has responded to the Bank of England's "painful" decision to increase interest rates today.
The Bank of England raised its base rate by a surprise 0.5 percentage points, meaning the Bank's base interest rate will go from 4.5% to 5%.
Reacting to the news, Martin Lewis said: "It's very hard to know how to react to a 0.5% increase in rates at this time. Clearly, we must tackle inflation, but this one trick method is causing huge pain to many on variable & coming off fixed rate mortgages.
"Plus spare a thought for #mortgageprisoners who've been paying over the odds for 15 years. Many will now have totally unaffordable 9% mortgages. Help for them is desperately needed."
This comes as Martin Lewis revealed which debit cards are the best to take abroad if you want to save cash while on holiday.
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Martin gives his thoughts on Labour’s mortgage policy
Martin Lewis took to Twitter this morning to give his opinion on the Labour Party’s newly announced mortgage policy.
He said: “Labour has put out its mortgage policy today, which in parts seems to mirror extremely closely what I’ve long been suggesting about forbearance help being reversible and no credit score impact.
“This is also what I hope to see govt pursue with banks as well as stopping them margin boosting.”
Mortgage holders ‘unlikely to get much support’
Mortgage holders are unlikely to get much support from a meeting the Government urgently called with bank chiefs on the repayments time-bomb, sources say.
Chancellor Jeremy Hunt and Treasury staff will grill high street lenders on what they can do to help homeowners as the cost-of-living crisis continues to bite.
What is Universal Credit?
Universal Credit is a welfare scheme which was designed to combine a number of old “legacy benefits” into a single monthly payment.
The old legacy benefits it replaced are:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
How could your mortgage be affected?
Mortgage rates have been rising with the BoE’s consecutive rate rises since December 2021.
But the exact amount that mortgage repayments rise will depend on the type of mortgage you have.
If you’re on a fixed-rate mortgage, the increase won’t immediately affect your payments.
But other mortgages, such as a tracker or standard variable rate (SVR) mortgage, could be impacted straight away.
Tracker mortgages are linked to the BoE base rate – which means you will see an immediate impact on your mortgage repayments if rates go up.
Martin Lewis issues urgent warning to millions on Universal Credit
Martin Lewis has issued an urgent warning to millions of families on Universal Credit who could be missing out on free cash.
The founder of MoneySavingExpert.com said that these households could cut their water bills by £160 a year.
Martin said: “Water’s often the forgotten utility, but the bill certainly isn’t forgotten, with it being £100s for most and over £1,000 a year for some.
“While water firms are privatised – so there’s no competition and you can’t switch provider – there are still loads of other ways you can try to cut the bill.”
Free debt advice
If you’re in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
- – 0800 138 7777
- – 0808 800 9060
- – 0800 138 1111
- – 0808 808 4000
When will mortgage rates stop going up?
So long as the Bank of England continues to put the base rate up, mortgages will keep getting more expensive.
The Bank's aim is to bring inflation back under control after months of double-digit price rises.
But it's taking longer than experts thought it would.
That's making markets wobbly because the longer inflation is high, the more the Bank of England will have to raise interest rates.
Why have mortgage rates gone up?
The Bank of England has hiked the base rate 13 times so far since December 2021, from 0.1% all the way up to 5%.
It means mortgage lenders have to pay higher rates of interest to their savers as well as when they borrow from the money markets.
This has pushed up their "cost of funds" so they have passed their higher costs to customers by hiking mortgage rates.
How do you log in to Universal Credit?
Universal Credit claimants can see their online account by logging in via the gov.uk website.
You’ll need your username and password – which are the same ones you had to set up when you first applied for benefits.
If you have forgotten your login details, you can put in a request to reset your username or password by entering your email address.
If you have an online Universal Credit account, you can also sign in via gov.uk verify.
In a worse case scenario, you can always try calling the Universal Credit helpline on 0800 328 5644 (Textphone: 0800 328 1344).
You can also get in contact via NGT text relay on 18001 then 0800 328 5644.
There’s a Welsh language helpline available on 0800 328 1744 too.
In pictures: How high are interest rates?
Hearing that interest rates have increased by 0.5% may not underscore just how much rates have increased in recent years.
Today’s increase marked the 13th consecutive rise in interest rates.
And it is likely that rates will increase even more, with some experts predicting they could reach six per cent by the end of the year.
Jeremy Hunt has his say on today's interest rate rise
The Chancellor said: "High inflation is a destabilising force eating into pay cheques and slowing growth.
"Core inflation is higher in 14 EU countries and interest rates are rising around the world, but the lesson from other countries is that if you stick to your guns, you bring inflation down.
"Our resolve to do this is watertight because it is the only long-term way to relieve pressure on families with mortgages. If we don’t act now, it will be worse later."
What does today's announcement mean for credit card and loan rates?
The cost of borrowing through loans, credit cards and overdrafts will go up too, as banks are likely to pass on the increased rate.
After consecutive rate rises by the BoE, interest rates on credit cards and personal loans already hit a record high in December, according to Moneyfacts.
Many big lenders - like Lloyds, MBNA, Halifax and Barclaycard - link their credit card rates directly to the Bank of England base rate.
That means their credit card rates will hike automatically in line with any changes to interest rates - but you'll be given notice before this happens.
You can check the terms and conditions of your credit card to see if the rate can go up when the base rate does.
Certain loans you already have like a personal loan or car financing will usually stay the same, as you've already agreed on the rate.
But rates for any future loan could be higher, and lenders could increase the rate on credit cards and overdrafts - although they must let you know beforehand.
You can cancel a credit card if you want and will have 60 days to pay off any outstanding balance.
BoE says interest rates could rise further
As part of its statement today, the Bank of England warned that further rises could be on the way.
This comes as the BoE announced interest rates had risen to 5%.
A statement read: "If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required."
How could your mortgage be affected?
Mortgage rates have been rising with the BoE's consecutive rate rises since December 2021.
But the exact amount that mortgage repayments rise will depend on the type of mortgage you have.
If you're on a fixed-rate mortgage, the increase won't immediately affect your payments.
But other mortgages, such as a tracker or standard variable rate (SVR) mortgage, could be impacted straight away.
Tracker mortgages are linked to the BoE base rate - which means you will see an immediate impact on your mortgage repayments if rates go up.
Sainsbury’s makes another major change to Nectar card to rival Tesco – and shoppers will love it
Sainsbury's has made another big change to its loyalty card in a bid to take on major rival Tesco.
One of the UK's biggest supermarket chains has added hundreds more products to its Nectar Prices including fresh fruit and veg.
Meanwhile, shoppers can pick up discounted prices on food-to-go items and ready meals.
Are you eligible for benefits?
A number of charities have benefits calculators that you can use to work out if you are entitled to any extra help.
This includes:
- Turn2Us
- Policy in Practice
- EntitledTo
It’s worth looking into, as if you do qualify, it could make you eligible for the £900 cost of living payment too.
Top 10 travel hacks to save some money
Are you a super savvy saver when it comes to booking holidays? Or do the websites get the best of you, causing you to miss out on deals?
Below are some top tips on saving money when booking a holiday.
- Compare different travel dates to see if it’s cheaper
- Search for flights departing on a particular day to see if it’s cheaper
- Pay for flights with a credit card
- Book a hotel directly rather than through a third-party site
- Pack as lightly as possible to avoid baggage charges
- Search for flights six-eight weeks in advance of the trip
- Buy a package deal to make the entire trip less costly
- Compare multiple flight comparison websites
- Compare multiple airline websites directly
- Book flights in the ‘off season’ of where you’re travelling to
How to catch up on the Martin Lewis Money Show
You can catch up on the Martin Lewis Money Show via ITV’s streaming service ITVX.
Last year’s series of the show provided crucial advice for Brits in need of financial support, from energy-saving tips to urgent money warnings.
The hit show returned on Tuesday for a holiday special.
Jeremy Hunt has his say on today’s interest rate rise
The Chancellor said: “High inflation is a destabilising force eating into pay cheques and slowing growth.
“Core inflation is higher in 14 EU countries and interest rates are rising around the world, but the lesson from other countries is that if you stick to your guns, you bring inflation down.
“Our resolve to do this is watertight because it is the only long-term way to relieve pressure on families with mortgages. If we don’t act now, it will be worse later.”
DWP issues major update on Universal Credit changes for families getting childcare help – are you affected?
The Department for Work and Pensions (DWP) has issued a major update on childcare changes for those on Universal Credit.
It comes just days before the childcare element of the benefit will get a bumper payment boost.
But the DWP has now issued further guidance to work coaches to decide exactly who qualifies for new upfront childcare payments.
Urgent warning to households on Universal Credit over bill rise – how to check if you’re affected
Universal Credit households are being urged to check if they're affected by an increase to a common household bill.
Thousands receiving the benefit could be eligible for a council tax reduction, or could even get the balance paid off in full.
What support you can get depends on your circumstances and where you live, as each council decides what help to offer those in its area.
Martin Lewis issues urgent holiday warning for anyone using debit cards abroad – can you save cash?
Martin Lewis has issued an urgent holiday warning to anyone using a debit card abroad.
The MoneySavingExpert (MSE) founder issued the warning in a special holiday episode of his ITV Money Show.
It included advice on the best debit, credit and pre-paid cards to use abroad this summer.
Martin Lewis issues urgent warning to millions on Universal Credit
Martin Lewis has issued an urgent warning to millions of families on Universal Credit who could be missing out on free cash.
The founder of MoneySavingExpert.com said that these households could cut their water bills by £160 a year.
Martin said: “Water’s often the forgotten utility, but the bill certainly isn’t forgotten, with it being £100s for most and over £1,000 a year for some.
“While water firms are privatised – so there’s no competition and you can’t switch provider – there are still loads of other ways you can try to cut the bill.”
Rishi Sunak insists he will ‘remain steadfast’ as Bank of England blasted for hiking interest rates AGAIN
Bank of England chief Andrew Bailey was blasted today for "failing" millions of households as interest rates were hiked AGAIN.
In a blow to homeowners, the Bank raised rates to an eye-watering 5%.
Responding to the rapid rise, Rishi Sunak vowed to "remain steadfast" in his mission to tackle high prices.
