MediEstates - Bank of England Interest Rate Increase & What it Means for You
Bank of England Interest Rate Increase & What it Means for You

Bank of England Interest Rate Increase & What it Means for You


The recent increase in the Bank of England's Base Rate, from 4.25% to 4.5% in May 2023, has had a significant impact on individuals with finance loans. In this article, we will discuss the implications of this rate rise for dentists and their practices, as well as provide guidance on mitigating the effects and maximising savings.


One of the key implications of the rate increase is that monthly repayments for variable rate loans and overdrafts are likely to rise. This is because the interest paid on outstanding balances is determined by the bank's interest rate plus the Bank of England Base Rate. With the Base Rate increase, those with variable rate loans and credit cards will experience higher monthly payments. However, if you have a fixed-rate loan, your repayments will not be affected in the same manner as those with variable-rate products.


The extent of the impact will depend on the amount borrowed and the interest rate on the loan. If you have a substantial amount of debt, the increased repayments may strain your cash flow and make it challenging to keep up with payments.



What can you do?


Apart from fixing into a deal, there are other measures you can take to mitigate the effects of the rate increase on your finances:


1. Explore refinancing your loan with a specialist dental finance broker: This involves taking out a new loan with different terms, such as an extended repayment period or a lower interest rate. Consulting with a specialist dental finance broker can help you explore various options and find the best deal for your dental practice.


2. Regularly review your business loans: By conducting regular reviews of your business loans, you can ensure that you are receiving the most favourable terms. Assess the interest rates, fees, and early repayment charges associated with your loans. If you discover better options elsewhere, it may be advantageous to switch lenders.


While the Base Rate increase will impact dental practices, it's important to note that the demand for lending in the healthcare sector remains strong. There is still significant interest from lenders in this industry. However, due to the constantly changing market, it's crucial to continuously review existing lending arrangements to maximise cost savings for your practice.


In conclusion, although the Bank of England's Base Rate increase will have an impact on dental practices, there are steps you can take to minimise the effects. Regularly reviewing your business loans and seeking advice from a specialist broker are effective strategies to ensure your practice remains financially stable.


If you have any questions or require assistance from a specialist broker, feel free to reach out to Henry Schein Financial Services. As a specialist dental finance broker, we can help you refinance your loan and save money in the process. Our strong relationships with healthcare specialists at various banks enable us to offer you preferential rates, saving you both time and money. While each loan case is assessed on its own merits, we present your case to the banks in the most positive light to secure the best possible deal.


Want a review of your current business loan? Get in touch today.


Posted by: Kimberly Parker on

General Buyer Terms 

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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