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Interest rates up for the first time in 10 years – what this means for families

The Bank of England increased the interest rate for the first time today in 10 years – a base rate increase 0.25%.

The increase was widely expected and although it is just a small increase, some families will notice a difference in their outgoings.

For example, if you have a mortgage that is linked directly to the Bank of England’s base rate, you will see an increase in your monthly repayments.

For example, for those with a tracker mortgage linked directly to the BoE base rate, for every £50,000 of borrowing on a 20 year term mortgage, the interest rate change today would increase their payments by £6 per month,” according to stats from the Mortgage Advice Bureau.

Around 43% of homeowners are currently on a variable or tracker mortgage, and can expect to see an increase, and although the increase may be modest, it can add up and families may well feel the pinch as we approach the festive season.

The increase in interest rate may also see an increase in repayments for other borrowings, such as credit cards or loans.

On the other hand, if you have savings, then you may soon see better rates, but the increase is small and if you are saving in cash, then it’s still worth considering investments, where you can expect higher returns.

Investments can be made using ISAs, for example.

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Reduce your grocery bill by 70% this summer!

The kids are off school and they are going to be hungry – inevitably, the next few weeks will see the cost of your weekly shop shoot up.

To help families keep the costs of food shopping down, MMM put Approved Food to the test, which can help slash the cost of shopping by as much as 70%.

There is of course one catch – the food is past or close to its sell-by date, but perfectly safe.

With a £30 budget, MMM managed to bag a fair amount – cereals, tinned food, sweets and treats, drinks and even laundry detergent and dishwasher tablets – the sort of things where you can generally ignore the date stamped on the product.

If you’ve tried reducing the cost of the grub by switching brands or shopping at discount stores but think you can do better, then try Approved Food  – you’ll be surprised at just how much you could save on some store cupboard essentials.

New products are available everyday and there are some real bargains. For example, Sprite Zero 330ml for just 29p or a 2kg Reeses Peanut jar for just £2.99. There’s even stuff for pets, at more than 50% off.

MMM was really pleased with service and surprised at just how at just how much £30 would buy (see pic above/ instagram).

Although we would like to see Approved Food cut down on the cardboard packaging, the items arrived well packed and in excellent condition.

So, if you’re looking to save a few more pounds on your groceries, take a look at Approved food – you’ll be surprised at just how good the bargains are.

 

Keep up with MMM on Twitter @MumMoneyMatters and Facebook !

 

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