UK Interest Rates and What They Mean for Mortgages
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The Bank of England is a big bank for the UK. It sets a special number called the interest rate.
This rate changes how much people pay for their mortgage. A mortgage is money you borrow to buy a house.
The rate also changes loans. A loan is money you borrow and pay back later.
It changes savings too. Savings are money you keep in the bank.
When the interest rate goes up, people often pay more money each month for their mortgage.
When the interest rate goes down, people often pay less money.
Millions of people in the UK feel this change. It can affect their money every month.
People watch the interest rate closely. It helps them plan their money.
Vocabulary5 words
- Bank of England
- the main bank that controls money in the UK
- interest rate
- a number that shows the cost of borrowing money
- mortgage
- money you borrow to buy a house
- loans
- money you borrow and must pay back
- savings
- money you keep, often in a bank
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Quiz
Answer key
1. The interest rate 2. Money to buy a house 3. True
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Bank of England is a big bank for the _____.
It sets a special number called the _____.
This rate changes how much people pay for their _____.
A mortgage is money you _____ to buy a house.
The rate also changes _____.
A loan is money you borrow and _____ back later.
It changes _____ too.
Savings are money you _____ in the bank.
When the interest rate goes up, people often pay _____ money each month.
Millions of people in the UK feel this _____.
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