{"id":39744,"date":"2024-08-02T09:51:19","date_gmt":"2024-08-02T09:51:19","guid":{"rendered":"https:\/\/kede.com.br\/news\/interest-rate-cut-might-help-me-move-out-from-my-parents\/"},"modified":"2024-08-02T09:51:21","modified_gmt":"2024-08-02T09:51:21","slug":"interest-rate-cut-might-help-me-move-out-from-my-parents","status":"publish","type":"post","link":"https:\/\/kede.com.br\/news\/interest-rate-cut-might-help-me-move-out-from-my-parents\/","title":{"rendered":"‘Interest rate cut might help me move out from my parents’"},"content":{"rendered":"


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\"RaphaelRaphael Sheridan \/ BBC<\/span><\/div>\n<\/div>\n

James Willicombe says moving back in with his parents means he can save up to \u00a31,000 a month<\/figcaption><\/p>\n<\/figure>\n
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The Bank of England has finally cut interest rates for the first time in four years.<\/p>\n

This modest cut from 5.25% to 5%<\/a> signposts the way to lower mortgage, credit card and loan payments but also savings rates for millions of people across the UK.<\/p>\n

At 25, James Willicombe decided to give up renting and move back in with his parents to save for a mortgage deposit. He’s hoping August’s interest rate cut is the first step to help him on to the property ladder.<\/p>\n

The record store manager was among those who shared what impact interest rates are having on their lives.<\/p>\n<\/div>\n

‘Hopefully lenders will offer better deals’<\/h2>\n<\/p>\n
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“I stopped renting at the end of April as I realised I was only saving \u00a3100 a month,” Mr Willicombe said.<\/p>\n

“I had a chat with my parents and I thought the best thing to do was move back in for 12-18 months. I can save up to \u00a31,000 a month now and if I carried on renting I would still be saving for a place of my own into my 30s.<\/p>\n

“I’m guessing such a small cut in interest rates isn’t going to lead to mortgage rates plummeting but it’s a step in the right direction and it hopefully gives lenders the confidence to offer better deals.”<\/p>\n

He said he hoped by the time he had saved his deposit, mortgage rates, which are influenced by the Bank of England’s base rate, would be lower.<\/p>\n

Mr Willicombe works as a manager at Kelly\u2019s records in Cardiff and said the cut in interest rates could also be good news for the store. <\/p>\n

“If rates are lower there’s less incentive to save so people might feel like they have more disposable income and be more willing to spend in the shop.<\/p>\n

“We say in the store: ‘Music is a form of escapism from day-to-day life.’ So if people are in more of a feelgood mood they will be more willing to spend on luxury items like vinyl. We are hoping to see an increase in footfall in our store.”<\/p>\n<\/div>\n

‘I hope I can find a buyer for my house’<\/h2>\n<\/p>\n
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Anna-Marie Craven, 48, from Wales, said she put her detached cottage on the market after her mortgage rate more than doubled.<\/p>\n

She is currently locked into a 4.8% mortgage, which rose from 2.2%, and is hoping to sell and downsize but is finding it hard to find a buyer.<\/p>\n

“My husband was a serving police officer – when he died suddenly at the age of 51, I was left not only with a disabled little boy who at the time was 18 months old, but with the mortgage after the life insurance refused to pay out.<\/p>\n

“I\u2019ve managed now for over six years renegotiating on low rates but I can\u2019t continue to pay on the new rate of 4.8%,” she said.<\/p>\n

Ms Craven said she hoped the Bank of England’s rate cut would “stimulate the housing market” so she can finally find a buyer.<\/p>\n

Nevertheless, she refers to herself as “one of the lucky ones”.<\/p>\n

“If I sell, I can then downsize and buy outright, but the housing market is tough right now,” she said.<\/p>\n<\/div>\n

‘I’ll make less on my savings’<\/h2>\n<\/p>\n
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\"CarlCarl Jones<\/span><\/div>\n<\/div>\n

Carl Jones says he has been a saver his whole life<\/figcaption><\/p>\n<\/figure>\n
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High interest rates have not been bad for everyone, though. <\/p>\n

Carl Jones is a self-employed gardener who lives in Wiltshire and likes to have at least \u00a320,000 in savings at any point.<\/p>\n

He calls this his “zero”, and it’s a mentality he has from growing up without much money. <\/p>\n

Because interest rates are high, he said he had made around \u00a3100 a month from his savings.<\/p>\n

“I’ve never had debt in my entire life,” he said, though he understands that others are struggling because of high rates.<\/p>\n

Though the cut will reduce his earnings, Carl said “it won’t be a massive change”.<\/p>\n

He said the period of high interest rates has been short, but it has still helped him to save a lot.<\/p>\n<\/div>\n

‘Customers will have more to spend’<\/h2>\n<\/p>\n
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\"RaphaelRaphael Sheridan \/ BBC<\/span><\/div>\n<\/div>\n

Rupali Wagh is hopeful the rate cut will mean customers will have more disposable income<\/figcaption><\/p>\n<\/figure>\n
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Rupali Wagh is a co-owner of Tukka Tuk street food in Cardiff. \u201cI have never had so many conversations [with customers] about mortgages and expenses,\u201d she said.<\/p>\n

The interest rate cut has made her feel \u201chopeful\u201d as it will eventually lower the payments on her business loans and means some customers will have more disposable income.<\/p>\n

\u201cIt\u2019s a small rate cut so I really do think it\u2019s a good start. At least we know they\u2019ve looked at it and said this is necessary.\u201d<\/p>\n

Ms Wagh remortgaged another restaurant, Tukka Canteen, in order to reopen it last week.<\/p>\n

\u201cOur mortgages are on fixed rates so there won\u2019t be a change straight away. But for us and our directors, if our payments go down on our personal mortgages we will have a bit more money that we can invest back into the business.<\/p>\n

\u201cI\u2019ve got more hopes for customers’ personal incomes because if I have no customers I have no business.\u201d<\/p>\n<\/div>\n

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Additional reporting by Gabrielle Sungailaite, Mitchell Labiak and Charlotte Edwards<\/i><\/p>\n<\/div>\n<\/div>\n


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Raphael Sheridan \/ BBC James Willicombe says moving back in with his parents means he can save up to \u00a31,000 a month The Bank of England has finally cut interest rates for the first time in four years. This modest cut from 5.25% to 5% signposts the way to lower mortgage, credit card and loan […]<\/p>\n","protected":false},"author":1,"featured_media":39745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[46],"tags":[724,2448,1685,1469,308],"_links":{"self":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/39744"}],"collection":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/comments?post=39744"}],"version-history":[{"count":1,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/39744\/revisions"}],"predecessor-version":[{"id":39746,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/39744\/revisions\/39746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media\/39745"}],"wp:attachment":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media?parent=39744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/categories?post=39744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/tags?post=39744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}