The Bank of England has announced that interest rates will rise from 0.25% to 0.5%.
Ollie Newbold, Head of Corporate Finance at Randall & Payne says, “an increase in interest rates was inevitable at some point, being that rates have been at an historic low for a decade now. The real question is whether this shows an intention to increase interest rates back to pre-crash levels of between 4% and 6% and over what period these increases may occur.
“Ultimately, lenders now stress test credit applications for mortgages and loans to ensure that they would remain affordable at higher interest rates, with all other factors being equal – this should provide some comfort for businesses, even if this does mark a move towards a trend of increasing rates.”
Randall & Payne offer free advice clinics to discuss any aspect of your business. If you would like to talk to Ollie about the debt structure within your business please call on 01242 776000 or email firstname.lastname@example.org.