On Thursday 2nd October it was announced that interest rates in the UK would be rising for the first time in 10 years. Previously, they stood at 0.25% but they’ve now increased to 0.5% – and there’s speculation that within the next three years, they could rise again. Here’s the impact that it could have on you…
Variable Rate Mortgages
The people who will be most affected by the interest rate rise are those who have a variable rate mortgage. The average person who has this type of mortgage owes £89,000, which will mean they will be paying back an extra £12 a month.
Although there’s still many people who are on a variable rate mortgage, they’re no longer as popular as they used to be. Now, 90% of new home owners are put onto a fixed-rate deal and fortunately, these people shouldn’t be affected by the price hike.
But what about Business Owners?
Sadly, the rise in interest will also affect borrowing, which means businesses who are looking to, or currently have a loan with the bank, will have to pay back more. Although people typically turn to the banks when in need of extra money, there are other options available. Alternative lenders are under no obligation to change their pricing so you can rest assured that what you agree to pay back won’t increase.
Whether you have plans to purchase extra stock or completely refurbish your business, don’t be put off lending. Look into your options and continue to reach for your goals.
Who are Capify? We don’t charge an interest rate
Capify provides finance to businesses across the UK. Our two main products are the Merchant Cash Advance which is perfect for businesses who accept credit and debit card payments, and the Alternative Business Loan, which is a great finance solution for owners of Limited Companies. Unlike the banks, we charge a fixed fee, which means no matter how much interest rates increase by, we will never charge our customers extra money.
For more information about how Capify can help your business, call 0800 151 0980 or
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