Waiting For The Next Move

Staying UK focussed this week, we have seen the Bank of England leave the base interest rate unchanged at 4.5%. What opportunities does this open for us?

1. Mortgages - if you are on a variable rate, then this will stay the same. If you’re nearing the end of a fixed-term deal, speak to your mortgage broker to secure a good rate - Mortgage providers are competing for business at the moment, and there are some rates as low as 3.99%

2. Savings - even though we have seen a slow decline in savings rates through the last 6 months, there are still good interest rates available and your cash can and should be earning you upwards of 4% (see below for rates).

Coming Up - The 26th March will see Rachel Reeves deliver the Spring Budget. Expectations are that she will address the £15-20 billion gap in public finances by announcing significant spending reductions, potentially marking the most substantial cuts since the austerity era. The Office for Budget Responsibility (OBR) is also expected to downgrade growth projections, influencing fiscal strategies and potentially leading to further adjustments.

Key Articles I Have Read This Week:

• The British public are expecting higher inflation over the year ahead. Reuters reflect the results of a Citi/YouGov survery: Read it here

• Funeral Plans can be a good way of planning ahead but if the firm that sells them goes under what happens? The FCA looked in to a case of this and their judgement is being called into question. Money Box podcast explores this isse: Listen to it here

Investment Markets This Week:

Best Cash Savings Rates This Week

ISA Allowances 💸 

Each adult gets £20,000 per tax year as an ISA allowance. This allows your money to grow free of tax and CANNOT be carried forward into the next tax year if you do not use it.

Time is running out but you still have time to get your money into an ISA if you want. Maybe consider a cash ISA as they are quicker to set up and you can always transfer it to a Stocks and Shares ISA later if that’s part of your financial planning and keep the allowance.