MediEstates - The Bank of England's Base Rate Increase And What It Means
The Bank of England's Base Rate Increase And What It Means

The Bank of England's Base Rate Increase and What it Means for Dentists


The last Bank of England Base Rate increase took effect on 4th August - changing from 1.25% to 1.75% - and this increase has already had a significant impact on those with finance loans. So, with the announcement of yet another increase - this time to reach 2.25% - what exactly does this mean for you and your dental practice?


In this post, we will explore the potential implications of this rate rise on your finances and what steps you can take to mitigate the effects and ensure you maximise those dental practice savings.


What Does the Rate Increase Mean?


The first and most significant thing to consider is that, if you have a variable rate loan or overdraft with your bank, your monthly repayments are likely to go up. This is because the interest you pay on your outstanding balance is determined by the banks interest rate plus the Bank of England Base Rate. When the Base Rate goes up, so do the monthly payments on variable rate loans and credit cards. If you have a fixed-rate loan, your repayments are not affected in the same way as those with variable-rate products.


How much this affects you will depend on how much you have borrowed and what the interest rate is on your loan. If you have a lot of debt, then the increased repayments may put a strain on your cash flow and make it difficult to keep up with payments.


Is it Better to Fix Into a Deal?


If you are worried about how the interest rate increase might affect your repayments, one option is to look into fixing your loan into a deal. A fixed rate is determined by cost of funds and not Band of England Base rate. This means that, regardless of what happens with the Bank of England Base Rate, your interest rate and monthly repayments will stay the same for a set period. Doing this can give you some peace of mind and make budgeting easier, as you will know exactly how much you need to set aside each month.


Of course, there are some things to consider before fixing into a deal. You may not be able to take advantage of any future interest rate decreases if the Bank of England Base Rate falls while you are still in your fixed period. Additionally, if you want to repay your loan early, you may have to pay a fee. It's important to weigh up the pros and cons of fixing into a deal before making a decision.


What Else Can You Do to Mitigate the Effects of the Rate Increase?


There are a few things you can do to ease the strain on your finances if the interest rate increase has made your monthly repayments unaffordable…


Look into Refinancing Your Loan with a Specialist Dental Finance Broker

This means taking out a new loan with different terms, which could include a longer repayment period or a lower interest rate.You may also want to consider speaking to a specialist dental finance broker about your options. Whilst the bank of England base rate is going up, there are still some very competitive rates and deals available from lenders. A specialist broker will have the right contacts at the banks with the right expertise and confidence to be able to offer you the best deal for your dental practice.


Regularly Review Your Business Loans

By conducting regular reviews of your business loans, you can ensure that you are getting the best deal. This process involves taking a close look at the interest rates you are paying, as well as any fees or early repayment charges. If you find that you could be getting a better deal elsewhere, then it may be time to switch lenders.

It should be noted that the demand to lend in healthcare remains healthy, and there is a huge appetite in this sector for new lending. However, as the market is constantly changing, it is important to continuously review any existing lending to maximise cost savings for your practice.



The Bottom Line


As you can see, while the Base Rate increase announced by the Bank of England will have an impact on many dental practices, there are steps that can be taken to minimise this impact. Regularly reviewing your business loans and taking advice from a specialist broker are two of the best things you can do to ensure that your practice stays on track financially.


If you have any questions or would like to speak to a specialist broker, please get in touch. Henry Schein Financial Services is a specialist dental finance broker who can help you refinance your loan and save money in the process. We deal with the healthcare specialists at the bank, so we are talking to the right people, with the right expertise and confidence to offer our clients the very best terms. Our relationship with the lenders means that we receive preferential rates - saving you both time and money. As with any loan, cases are assessed on their own merits, however, when arranging a loan review with us, we put the case forward to the banks in the most positive light in order to source the very best deal.


Contact us today for a free review of your business loan!​


Posted by: Shannon Loonam 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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