On Thursday 9th May, the Bank of England held firm on the current interest base rate. Iain Stevenson, Head of Dental at Wesleyan Financial Services (of which Practice Plan is a part), has commented on what this means for dental professionals.
“For dentists – particularly homeowners or those looking to get on the housing ladder – the immediate implication of the Bank’s decision to hold interest rates will be the likely lack of relief on mortgage rates.
“House prices have been falling recently, and we’ve seen most of the main mortgage lenders set out plans to actually put their rates up. Many people will have been hoping for a rate cut, so today’s news won’t be welcome from that regard.
“The Bank is playing its cards very close to its chest when it comes to when it will start to bring interest rates down, but the good news is that one is still expected to be sometime this year. In the meantime, those seeking a mortgage, or remortgaging, will have to continue to accept higher rates than they could get two or five years ago.
“It’s also likely to keep the cost of debt higher, for longer, which may affect those looking to secure financing to buy or expand dental practices. There may be good deals out there, however, for specific circumstances, so it’s always worth doing your research and seeking professional advice on the market.”
