Martin Lewis issues urgent warning to 35,000,000 UK credit card holders ahead of rate rise

| Assistant Lifestyle Editor Published October 14, 2026 11:41am Updated October 14, 2026 11:41am Martin warned the Bank of England may soon increase the base rate (Picture: Getty) If you’re one of the more than 35.3 million UK adults with a credit card, Martin Lewis has some urgent advice. In the latest edition of his newsletter, the Money Saving Expert (MSE) founder warned people to take advantage of 0% balance transfer deals, as they may soon be harder to come by. ‘For most of the last year, apart from the usual competitive flick-flacks, top balance transfer deals — which let you cut the cost of existing debt — have barely budged,’ he wrote. ‘Yet that could soon change, with markets pricing in that the Bank of England may increase the UK base rate up to four times over the next 12 months, starting next month.’ As Martin explained, a nationwide hike then has the potential to trickle down to consumer credit, with 0% terms being reduced while APRs and fees are increased. While the finance guru highlighted nothing is certain, he speculated lenders may also ‘keep headline deals the same but tighten their acceptance criteria’ — a change that’s often ‘most difficult to spot.’ Balance transfers can help you clear your debt faster (Picture: Getty Images) With that in mind, now may be the time to take advantage of offers, particularly if you owe a significant amount, meaning the debt costs you more in the long-run. ‘If you’re paying interest on credit card debt, my hunch is it’s safest to sort sooner, especially as there are some strong deals this week,’ adds Martin. Bear in mind, though, there are a few caveats. Balance transfers explained A balance transfer is when you move existing debt to a credit card with a promotional 0% or low-interest rate for a set period of time. Alongside consolidating multiple debts into a single payment, this can help you clear what you owe faster, as everything goes towards reducing the principal amount rather than interest charges. Exact terms can vary between providers and specific offers, but you’ll typically be charged a one-off transfer fee at a percentage of what you move, with extra charges incurred for missing payments, purchases or cash withdrawals. Once the promotional period expires, the interest charged on any remaining balance will go up. The type of balance transfer deal you get will depend on your creditworthiness and eligibility criteria, but in general, MSE says it’s best to go for ‘the lowest-fee card with a 0% term long enough to clear your debt.’ In terms of what happens after you’ve been accepted, the site explains: ‘The process is simple: just fill in the “do a balance transfer” or similar section on the new card’s app or website, or in some cases call up and request a balance transfer. It’ll sort it from there.’ Ask Metro Use AI to go deeper into the stories you care about – powered by Metro and trusted publications. While balance transfer deals can be massively helpful in allowing you to get debt-free faster, you have to go into it with the goal of clearing what you owe (or at the very least switching to another 0% card) before the introductory period is up. Otherwise, you’ll end up on an expensive regular APR, with rates averaging at 22.25% (although they can be even higher). Another key thing to be aware of is that if you miss the minimum repayment, you can not only be charged a fee, but potentially lose your 0% rate altogether — which is why Martin recommends setting up a direct debit. He also highlights that regular spending and withdrawing cash ‘usually isn’t at 0%, so will be expensive’. It may be best not to think of this as a regular credit card at all, keeping it somewhere safe rather than in your wallet in case you’re tempted. Finally, Martin advises against further borrowing if at all possible. Personal finance expert at CredAbility, Aaron Peake, previously told Metro: ‘If you’re regularly carrying a balance month to month, switching cards might offer breathing room, but it’s also worth using this time to build habits that help you avoid falling back into the same pattern. ‘It’s easy to focus on the interest-free period as a way to delay, but to make the most of it, you should treat it like a repayment deadline. Set yourself a realistic repayment plan and automate it if you can. 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