What actually happens to your money when interest rates rise?
The Bank of England moves rates, and suddenly everyone's talking about it. Why does it matter to you?
The simple version
When the base rate rises, borrowing gets more expensive and saving pays a bit more. Borrowers on variable deals feel it quickly; savers benefit slowly.
A 25-year repayment mortgage. Drag the new rate.
At 2%
£848
At 5.50%
£1,228
That's £380 more every month — £4,566 a year.
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Key takeaway
Rising rates hurt borrowers and help savers. Know when your fixed deal ends — that's when it hits.
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