Martin Lewis: This Is How The Interest Rate Rise Will Impact You

2 November 2017, 14:02 | Updated: 2 November 2017, 14:25

It’s been so long since we last had a rate rise that some may be confused about what it means for them. Money Saving Expert Martin Lewis analyses it in under three minutes.

He told Shelagh that if your mortgage is fixed there will not be any change. For those with a variable mortgage it will mean around an extra £200 per year for every £100,000 of mortgage.

It means if you have a £200,000 mortgage it will cost you just under an extra £400 a year.

He expressed surprise with the number of people with fixed mortgages that have been contacting him.

"It just shows you it's been 10 years since we last had a rate rise that anybody under 30 has never experienced this”.

Martin also had some advice for savers and what it will mean to their rates. He said savings rates have already creeped up over the last six months in expectation of rate rises.

"Fixed rates are already much higher than they were 6-7 months and you can fix the one year at 1.8%."

So what did Martin see when he looked into his “crystal ball”? Have a listen in the video at the top of this page.