Last month I considered the question of whether or not we’re Better Together, with a swelling tide supporting anti-Europe politics and the Scots about to vote on independence. But there is another change on the way and, unlike the aforementioned issues, this one is going to happen.

During the difficult economic times of the last five years, one thing has stood alone as a bedrock for survival at both a corporate and personal level. The coalition parties would tell you that it is their policies that have been the platform and it would be true to say that good financial management by central government in re-balancing the books has made a major positive contribution to our financial well-being as a country as a whole.

But it’s something that government handed over to the Bank of England a number of years ago that has underpinned our financial stability. I’m talking about interest rates. We have now enjoyed the lowest base rates in the country’s history for the remarkable period of 63 months – our interest rates are among the lowest in the world. That is all about to change as the new Governor of the Bank warns us on an increasingly regular basis.

Will it be good or will it be bad? Personally I think the latter, but that will not apply universally. I know that my dad, and others relying on investment and pension income in their retired years, would welcome a better return on their funds. Their days of borrowing are long gone, so they look at it, quite rightly, from a completely different perspective to those of us for whom owing money on mortgages is a way of life.

The main message is that there will be change. Interest rates will rise and put pressure on company and household budgets alike. Times of change are always tricky to manage and can be quite stressful, so think ahead. Is there anything that you can do now that will ease the pain when the cost of borrowing increases? Stress test your financial outgoings. Work out how much more your loan or mortgage will cost you if base rate rises by, say, two or three percent.

Burying your head is not an option
The Governor of the Bank has promised that any rate rises will be gradual, but they review it every month, so it won’t take long for a series of gradual increases to become a steep hill. If you’re capable of looking ahead and doing something to manage the change, it will be to your benefit in the long run. Burying your head is not an option; change is going to happen.