The Cost of Borrowing Pop quiz. What is the cheapest loan out of these two – Interest rate 5% Interest rate 5.5% Sounds simple doesn’t it. The interest rate is cheaper so that must be the best loan option. That said, you probably realised the obvious answer was wrong and went for the more expensive
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Base Interest Rate The base rate of interest has been kept at the all time low of 0.5% for at least another month. Good news for variable rate mortgage holders, good news for borrowers. A settled and consistent base rate of interest can provide confidence, however we are increasingly seeing talk of rising interest rates,
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The European Central Bank (ECB) has today announced a cut in it’s base rate of interest to 0.50% This is nothing unexpected but does highlight a few interesting developments in the Eurozone. First things first, what is a base rate? Base rate is a commonly used term, think of it as the base level from
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Sensitivity Analysis ‘Sensitivity Analysis’ may sound a scientific or complicated term, but really it is very simple but too often misunderstood or ignored. Here we look at how the business owner and lender view sensitivity differently, and how unless one understands the other it will end in tears. OK, What is it? Many businesses will
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