Interest rate rises

If interest rates rise, one of the first concerns for many is their mortgage payment as variable mortgages tend to increase directly. Bond investments are also affected: as interest rates rise, bond prices go down in order to bring the rate of income they pay back in line. And changes in interest rates don’t just affect individuals. An increase can affect companies as well as more profit is needed to pay higher borrowing costs, which can ultimately hit the share price. This can have a knock-on effect across your investment portfolio. However, if you remain clear about your long-term objectives, these short-term moves should not be seen as any cause for panic.

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