Do you have a tracker or variable rate mortgage or business loan?

If so, have you thought what you are going to do with the spare 2% of interest you will be saving each month following the recent Bank Of England base rate cuts ?

At finance 4 chiropractors (Kelsall Steele) rather than cracking open the champagne and indulging in caviar sandwiches, we believe it far better to benefit from today’s low interest rates to protect against the raises which will inevitably come at some stage.

With a mortgage or loan of £200,000, you should now find yourself around £333 per month better off – so what to do with it ?

Add into the equation the low position of investment markets, combine the two, and there is a great potential to save for the future.

In 11 months, you could have used either your Cash ISA allowance, or even better part of your investment ISA allowance.  When markets improve, there is a great potential to pay a lump sum off the borrowing.

The same principle follows for mortgages.  £333 per month (plus tax relief of 20%), takes the contribution to over £410 per month – with out the market growing at all, over 2 years you would have saved almost £10,000.

For more information, call Jeremy Squibb at our offices on 01872 271655.