Property and agricultural business owners in Mid Wales and Shropshire are being urged to consider fixing the interest rate paid on any debt they have.
The comments come from property letting and agricultural specialists at Morris, Marshall and Poole who say the current low base rate means certainty of knowing medium and long-term costs to a business.
“It is often said that there are only two things in life which are certain – death and taxation,” said Tony Evans, a partner at Mid Wales and Shropshire estate agents and property surveyors, Morris, Marshall and Poole.
“In these uncertain times when its seems increasingly likely that base rates may rise in the medium term, it may be an opportunity to make another thing certain, the level of interest you pay on debt?”
As the leading agent for The Agricultural Mortgage Corporation (AMC) in the region, MMP deal with many finance applications for clients, particularly in the agricultural sector.
“Some clients are taking the medium and longer term view that in the uncertain market place for agricultural products and the uncertainty in support payments, it is worth paying to get some certainty as they do not want to go forward with a possibility of rate rises reducing margins.”
He added: “Although fixing interest rates does carry a cost implication to the business some of our clients are looking at this extra cost as an insurance policy which they are happy to pay to be able to sleep at night.
“It is an effective way of ensuring that there is at least one part of their business they can control and at the historically low levels of interest where rates can be fixed at very competitive levels it really is worthwhile thinking about taking charge of your business and making positive steps to protect it going forward.”
Morris Marshall and Poole act for clients in all sectors of property in its sale letting and management and are seeing clients who are being advised to fix their interest rate on their debt to have the certainty of knowing how much their costs for finance will be in the future.
Robert Hudson, a partner at MMP and who is also an agent for the AMC, said “We are seeing clients who are contacting us for a discussion on this matter and we are always more than happy to run through this with interested parties. Of course we cannot advise them, but we can certainly look at their business with them and help them decide their best route."
Call MMP on 01938 554818 for more details.
Caption: Rob Hudson, a partner at MMP and an agent with AMC