Our top tips to make sure you beat the base interest rate rise — plus find out high street deals from Sun Savers
NOT very interested in interest rates? Well now you should be.
Yesterday’s rate rise by the Bank of England saw rates edge up from an all-time low of 0.25 per cent to 0.5 per cent.
While it’s only a small increase, it’s the first one in a decade and may well mean more hikes are on the way.
And for borrowers comfortably used to historic low rates, any upwards movement could squeeze already-stretched household budgets.
But the good news is, if you’ll be a loser in the rate change it is possible to claw back the cash.
Here’s how — and also how some of you will be winners from the rise.
LOSERS
MORTGAGE: 9.2million households have a mortgage. Around half on a standard variable rate or tracker rate, which will be hit by the rise. The average household owes £89,000 on their mortgage, so you’ll need to find £11 extra each month.
How to make it back: Switching gas and electricity to a cheaper deal will save £16 a month on average.
RENT: The average cost of renting in the UK is already £1,196 a month and landlords say the rate rise could see rents also start to increase. But if you’re already renting, your payments will be fixed in your contract and won’t change until the agreement ends.
How to make it back: Bargain hard, as landlords don’t want to lose good tenants — it costs them more to find new ones than they’ll make putting up your rent. And shop around for another property as a back-up.
CREDIT CARDS AND STORE CARDS: Credit card rates are already at record highs, so experts say the 0.25 per cent rise won’t make much difference. On an average £7,000 balance, you’ll only pay between an extra £1.50 to £5 a month, equivalent to £18 to £60 a year.
How to make it back: Turning off your appliances and gadgets rather than leaving them on standby will save between £50 and £80 a year.
LOANS: Got a loan already? It’s likely to be on a fixed repayment and won’t change. But if you’re taking out a new loan, rates are likely to be higher.
How to make it back: Before taking out a new loan, find the cheapest deal at .
PRICES AT THE SHOPS: Retailers will be wary of hiking prices too much, as consumers will be keeping the purse strings tight.
How to make it back: If prices do go up, use discount codes, shop at your local market, try discount stores like Aldi or use cashback site like to keep costs down. App checkoutsmart is also a good way to make back some money.
WINNERS
SAVERS: 45million savers are likely to see higher returns. A number of providers have already announced they will be increasing savings rates.
Money gained: This will depend on how much you have saved. A saver with an average of £10,000 stashed away in an easy-access account should see interest go up from just £14 a year to £39 — an extra £25.
PENSIONS: Pensioners have been promised a “modest boost”.
Money gained: Check with your pension providers to see if your situation has changed.
FIVE WAYS TO COPE ON LESS
HERE are National Debtline’s top steps to dealing with a rate rise.
- Prepare a household budget. Look at what you have coming in each month and what you need to spend your money on – remembering to include annual costs like car insurance by dividing the annual cost by 12.
- If you have a mortgage, consider switching to a fixed deal. To assess your options, use moneysavingexpert.com/mortgages.
- Deal with existing debts now. If you are already in arrears with your mortgage, rent or any other kind of debt, don’t delay dealing with them. With an interest rate rise you could find your costs increase and in some cases, your existing debts become more expensive.
- Maximise your income and re-examine your costs. Ensure you are claiming all the benefits to which you are entitled, check you are paying the right tax and see if you can up your hours at work if you need a little more money. At the same time, re-examine your costs to see if there are any savings you could make.
- Seek free advice if you are struggling. If you are worried about how interest rate rises might affect you or if you are already struggling to cope with existing debts or unpaid bills, seek free advice from a charity-run service such as National Debtline as soon as possible.
See .
Today's top reader tip
TINA DUNN from Brierley Hill, West Midlands, says: “If you pay to park at your local supermarket and get it refunded when you spend a certain amount in-store, pop the refund into a piggy bank until the end of the year. It all adds up.”
- Send us your tips to [email protected] and you’ll get 28 codes worth £5 if yours is used. Please include your name and town.
A real beauty for sleeping
SAVE BIG: This deal is fit for a princess. Disney Princess Carriage Bed Frame, was £239.99 now £199.99 at tesco.com.
SAVE: £40
SAVE SMALL: Here’s a seriously spook-tacular saving to grab for next year. Just buy them a size up for the kids. Halloween Spider Socks. Were £1.50 now 50p at direct.asda.com/george.
SAVE: £1
The season of good will
SAVER SPOT 1: Get your will written in return for a donation to charity this month. See for details of participating firms. Offer ends November 30.
SAVER SPOT 2: Bag an early festive bargain in the Argos’ 3 for 2 toys deal. Starting today until November 7, there are thousands of toys on offer including Lego, Chad Valley, VTech, My Little Pony, Barbie and Nerf. The deal extends across hundreds of big brand toys for all ages. See
- PRICES correct at time of going to press. Deals and offers subject to availability.
Fancy a free fiver?
YOU can get FREE cash with super Sun Savers just for buying your favourite paper.
Our brilliant new rewards club, which launched this week, 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.
In fact, it is completely up to you how much you save.
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!
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
THE Star Wars galaxy is not so far, far away. You could be transported to iconic scenes from all your favourite films with two FREE tickets to Madame Tussauds London.
See how you measure up against sinister Stormtroopers, witness Luke Skywalker battling Darth Vader on the Death Star and hang out with Han Solo in the cantina.
You can even step aboard the Millennium Falcon and travel at hyper-speed with your co-pilot Chewbacca.
To claim your two FREE tickets, simply download the Sun Savers app or register at sunsavers.co.uk and collect NINE Sun Savers codes by Tuesday, November 14 .
You can collect TEN in-paper tokens and send in with the booking form.
See for more details.
T&Cs apply. Subject to availability.
MOST READ IN MONEY
Find Asda discount codes with The Sun Vouchers