What are interest rates, why do they matter?
Interest is a charge on borrowing money and the interest rate is the size of this charge. This means that when interest rates rise or fall, the cost of borrowing can go up or down too. It’s important to think about this and understand how either situation will impact the potential cost of your mortgage.
The Money Advice Service have a really simple illustration which explains what interest rates are and why they should matter to you. Take a look below!