Financial specialist Michael Lansdell asks: "Interest rates rise? What it could mean for you and your business"
What impact will an interest rate rise have on you and your business?
If you are on a variable rate mortgage, would it be prudent to switch to a fixed-rate deal now? If you are looking to buy a new property – either residential or business – would a rate rise effect the kind of mortgage that you choose?
If you are a saver, the idea of a possible rise in interest rates will be greeted with (cautious) optimism, especially if you have a deposit account or cash ISA. Only a few years ago you may have enjoyed a 1% interest rate on your savings account and now it’s likely to be around half that. According to one report, Cash ISAs saw a whopping £20bn fall in the amount invested in them in just 12 months. Low interest rates certainly make these kinds of products less attractive and we also have to factor in changes to personal savings allowances since 2016.
The general economic outlook remains uncertain and making too many predictions would not be wise. Hardly anyone predicted that inflation would rise again in May, for example. The US central bank did increase short-term interest rates for the second time this year, but that had been well flagged in advance so therefore came as no surprise. Before you do anything, get advice from professionals with an in-depth knowledge of the dental sector, such as the accountants at Lansdell & Rose. As well as help with tax compliance and business planning, they can help you decide if you need to look at new products – re-mortgage, for example – or if, and how, you should move your money around.
Pundits are predicting interest rates are likely to rise, yet we have seen repeatedly how financial experts have been caught out by unexpected turns of events. This is not a time for rash decisions or fast action. But good planning and the right advice can strengthen your hand should things change.
To find out more call Lansdell & Rose on 020 7376 9333, or visit www.lansdellrose.co.uk