What is a good interest rate on equity release?
Equity release plans often offer the option to protect a portion of the property’s value as an inheritance for loved ones.
How much interest is tax-free?
While you may need to pay tax on interest if you go over your PSA, you don’t pay any tax on interest with Individual Savings Accounts (ISAs). They’re tax-efficient savings or investment accounts available to UK residents.
What is the personal savings allowance?
Maximising your income by minimising your tax liability is being financially tax efficient. And, if you use all of your allowances, you’ll be doing so legitimately. One such allowance is your personal savings allowance, which can be an effective way to shield your income from paying more tax than necessary. What exactly is the personal …
Fixed vs. variable interest rates
At first glance, understanding variable versus fixed interest rates looks like a no-brainer. Commonly associated with loan finance, one of the rates will vary over time, while the other is permanently set. However, there’s much more to understanding variable and fixed interest rates and how to use them to your benefit. Financial instruments which use …
Mortgage rate predictions 2023
After each Monetary Policy Committee (MPC) meeting since December 2021, we have seen interest rates rise. Lenders have been quick to implement the rises following the announcement of bank rate increases by the BoE and MPC. Many are concerned that these rate hikes, soaring inflation and living costs have left the nation in a financial crisis.
How does the Bank of England make interest rate decisions?
When it comes to how the BoE makes interest rates decisions and sets interest rates, it is essential to know the role of the Monetary Policy Committee (MPC). Members of the MPC meet eight times a year after a briefing by staff from the central bank.
What is interest rate risk?
Interest rate risk is the concept of risk relating to changes in interest rates. The risk presented with fluctuations in interest rates is particularly relevant to fixed-income investments such as corporate or government bonds.
Does the US interest rate influence the UK?
It is essential to remember that any changes in the US interest rate can impact the global economy. After all, America is the world’s largest economy. So whenever the Fed chair, Jerome Powell,
What is compound interest?
When looking at some financial products from lenders, you will come across many terms such as annual percentage rate, accumulated interest, APR, APY, and more. You will also hear the terms simple interest and compound interest.
What is the relationship between interest rates and inflation?
Understanding the relationship between interest rates and inflation can help you better manage your personal finances.