Fixed Rate Mortgages, Drop Lock Mortgages, Offset Mortgages - Business, Commercial & Buy to Let

12th December 2003

Protect Your Business Against Rising Rates

Last weeks decision by the Bank of England to raise interest rates came as no surprise however there is a wide perception in the market that continued rate rises are inevitable.
If you are concerned about the effect rising interest rates will have on your business there are a number of finance options you could consider to help protect your business.

1. Switch to Fixed Rate Mortgages

As payments on variable/discount rate mortgages will rise in line with interest rates you should consider switching to fixed rates to insure against further rate increases.

Commercial Mortgages | Buy-to-Let Mortgages

2. Utilise "Drop-Lock" Rates

You could also consider a 'drop-lock' mortgage rate which gives you the benefit of a variable rate but additionally provides the option to fix the rate when it is convenient for you.

Commercial Mortgages | Buy-to-Let Mortgages

3. Consider Offset Mortgages

By switching to an offset business mortgage, where the interest on your mortgage is reduced by the funds in your business current account, (just like residential offset mortgages), you can reduce the capital that you pay interest on your mortgage, effectively counteracting interest rate rises.

Commercial Mortgages | Buy-to-Let Mortgages

4. Consider Leasing

Bank loans and overdrafts offer variable rates which will be affected by rising interest rates. A more attractive form of finance for you business needs is leasing where rates are fixed for the term of the lease.

Commercial Mortgages | Buy-to-Let Mortgages ">Lease Finance

5. Maximise Your Account Receivables

Whilst considering the risks to your business posed by rising interest rates, you should also consider the effect it may have on other companies you deal with. Check your account receivables for poor creditors and utilise professional debt collection companies if necessary to ensure you receive amounts payable before it is too late.

Debt Collection

Business Finance Newsletters

Q2 Factoring Update - 09.06.2004
FSB states 25% of businesses fail but what can be done?

Brighter Outlook for Small Business in 2004 - 17.12.2003
Small Business Outlook Brightens

Government Initiative to Save SME's over a Billion on Energy Costs - 25.11.2003
ME's Waste over a Billion on Energy Costs

Protect Your Business Against Rising Rates - 12.11.2003
Ways to Protect Your Business Against Rising Rates

Interest Rates Rise by 0.25%: What it means to you. - 06.11.2003
Impact on Your Mortgages

Q4 Factoring Update: Brumark Bites - 04.11.2003
How Brumark will affect you and an invoice finance glossary

SME Economic Confidence up 22% - 28.10.2003
SME business confidence report and buying vs. leasing property guide.

Rising Crime Affects a Quarter of UK Businesses - 15.10.2003
Covers crime and how it effects UK business. Also includes finding the right finance for your business.

Invoice Finance - Easing Cash Flow Concerns - 01.10.2003
Report from The Factors and Discounters Association plus info on invoice disounting and lease financing.

Quarter 3 Insurance Update - 25.09.2003
Insurance update.

Small Business Owners Relish Their Freedom - 18.09.2003
Poll shows majority of small business owners would not work for someone else.

Q3 Mortgage Update - 11.09.2003
Trends in buy to let mortgages and commercial mortgages

Tailored solutions for your commercial vehicle needs - 04.09.2003
Report on commercial vehicle purchasing, financing and insuring.

Sources of Red Tape Plaguing UK Small Businesses - 26.08.2003
Poll shows red tape plaguing UK small businesses, plus tradesman insurance and equipment leasing.

Quarter 3 Factoring & Invoice Finance Update - 20.08.2003
New invoice factoring and invoice discounting partners, and switching from one Ffctor to another

Understanding Business Overdrafts - 06.08.2003
Business overdrafts and the alternatives.

Our Quarterly Mortgages Update - 28.05.2003
Trends in buy to let mortgages and commercial mortgages

Business Finance Online Info Centre

If you need more information on a particular product or service before investing/purchasing, try consulting our useful business finance reference section.

NB: The information on this business-finance-online.co.uk is for informational purposes only and should not be treated as business, financial, or any other form of advice.