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Interest Rates in the UK for Expats in Portugal (for Edit)

Interest Rates in the UK for Expats in Portugal (for Edit)

The Bank of England has increased the interest rate from 0.5% to 0.75% on 2 August but take note that the possibility of further inflation will depend on how the economy fares for the rest of the year as we approach Brexit.

The interest rate change didnt cause much flactuation for the pound against the euro. Expats earning income in sterling should be attentive of fluctuations in the future because increased exchange rate volatility is possible as we approach Brexit. Now might be the time to deal with changing the way your pensions and investments are structured.

 

If you are considering a transfer to a final salary pension, you may find that transfer values fall, but there is much to evaluate when deciding what to do with your pension. Cash savers with funds in UK accounts will depend on their bank or building societies decisions whether or not to pass the increase on.

 

Further, the 0.25% interest rate rise will do little to stop the erosion of savings when inflation is factored in. By now, long-term savers should understand that while banks offer a relatively low-risk option for their hard-earned money, they are unlikely to offer the growth that most people need to fund the retirement lifestyle that they want.

 

If you are an expat in Portugal who owns UK property and you are on a fixed-rate mortgage deal, there will be no immediate increase in your payments. However, tracker mortgages will increase. Understanding your wealth and assets is key to making the right investments for the future.

 

As an expat in Portugal, getting advice from professionals who have years of experience in the country is a really positive step. And that’s where Ideal Homes can help, from getting your property to making it a investment and earning a rental income from it.