Interest rates review: What does it mean for you?

Last Thursday saw The Bank of England raise interest rates to their highest level in nearly a decade. So, what does this mean for you?

 

Where has this interest rate rise come from? It’s all to do with the UK’s hottest topic at the moment, Brexit. The aim is to stamp down on inflation and prepare for a potential economic downturn as Britain leave the European Union.

 

It’s only the second time in a decade that the Bank of England has raised the interest rate, yet the rise has risen by a quarter of a percentage point, from 0.5% to 0.75%. This is the highest since March 2009.

 

The Bank’s priority is to keep the rising cost of living under control. But the biggest effect this rise will be on those who have a mortgage.

 

Some interest rate facts (source: BBC)

  • 5 million residential mortgages are on a variable or tracker rate.
  • The average standard variable rate mortgage is 4.72%.
  • A £150,000 variable mortgage rising to 0.75% could see an increase in annual cost to £224.
  • A bank rate rise does not mean an equivalent increase in interest paid to savers. The last rate rise meant it did not move.

 

The LIBOR rate is the Bank of England’s official borrowing rate. This is the rate at which it charges other banks and lenders when they borrow money. It also influences what borrowers pay and savers earn.

 

Here are the key considerations and effects for the interest rate rise:

 

As we’ve already mentioned, mortgage rates will rise – standard variable rate mortgages will most likely go up and a ‘tracker’ mortgage will most definitely go up.

 

For savers, it’s good news – It could push best-buy rates up on savings accounts and ISAs.

 

Loans should be unaffected, unless you’re a new borrower – For new borrowers they could see a rise. Existing loans will most likely have a fixed rate.

 

A rate rise could be a welcomed addition to retirees – A rate rise is welcome to retirees buying an annuity – a financial product that provides an income for life.

 

The latest rise works for some but not others. But how does it affect you? We’d love to hear from you!

 

If you have any questions, then do get in touch with us, we’d be more than happy to help!

It’s no secret that having a healthy and active lifestyle is great for your wellbeing and morale – in day-to-day and working life. Whether you’re a business owner, director, manager, team leader or an employee, are you embracing a healthy and active lifestyle?

 

Physical activity and healthy eating provide countless benefits to a person. There are many studies which prove that regular physical activity improves the quality of your life. Not only that, but it also increases your lifespan by reducing the risk of chronic illness.

 

Interestingly, Dairy Goodness says that being physically active means you have more vitality, are in better shape, have better mental health, can manage stress better and have more self-esteem. These traits link to what managers, directors and other senior staff want from their employees.

 

Consider the traits which make for a functional and successful workplace

Content staff is a must have. Ensuring your employees are happy will make all the difference, and you can help them feel better within themselves.

 

Contemplate the health benefits which Dairy Goodness refers to – they each match what you want from your team in the workplace: good energy, great mental health, ability to manage stress better and to have more self-esteem.

 

How healthy and active staff can benefit a business and working environment

 

Fit staff – reduces absence

Absence – it’s not ideal for employees or businesses. Fit, active and healthy employees generally have less of a chance falling ill with cold, flu and other illnesses. Of course, it’s unavoidable to stay ill-free all year, but it can result in less absenteeism and expenditures.

 

Staff pumped with more energy

Another benefit is staff will have more energy. This will help them to focus on their tasks and have a higher level of self-confidence, which can then rub off onto other staff members and result in better morale overall.

 

Encourages and presents a committed and organised ethic

Staying fit and healthy is hard work, which is the best trait that an employee can have. If they’re able to plan out their diet and exercise methodically to produce great results, they can achieve this in their work too!

 

How to encourage healthier and happier staff

 

Employees appreciate staff benefits, and there’s nothing better than introducing something which will truly benefit them – employee wellness programmes, gym memberships, weekly meetups or free weekly classes.

 

Regular fitness activities

Some organisations have an on-site gym or hold fitness classes in the workplace, but for some this isn’t possible. If it isn’t possible for you, then you could offer to pay or reimburse staff for a gym membership or when they attend a fitness class outside of work. It could even become a regular team building occasion for you all to take part in!

 

If you don’t have the resources to afford this benefit for all of your staff, why don’t you suggest making a running club or even go into a specific sport that everyone likes – maybe start 5-a-side football team? Golf once a month? Lunch time walking club? Anything!

 

Employee wellness isn’t all about exercise…

There’s more to keeping staff happy and healthy, it doesn’t always have to be about exercise. Even providing fruit in the office is still something which staff can appreciate!

 

If you have a unique health, fitness and wellbeing staff benefit in your workplace, let us know about it!