top of page

Could You Cope with an Interest Rise?

Mortgage interest rates have been at a historic all-time low for quite some time now. This is one of the reasons why many new investors have entered the buy to let market. Low interest rates combined with rising rents has meant very attractive rental yields in many parts of the country. Demand for

******Whoops! Looks like this is an old post that isn’t relevant any more :/ ******

******Visit the blog home page for the most up to date news. ******

rental property is also high, which makes it easier to find tenants and reduces the number of void periods. But are the boom times about to end?

Low Interest Rates The Bank of England has held its ‘Bank Rate’ at 0.5 per cent since 2009 in order to help the economy recover from the effects of the recession. This in turn has kept interest rates very low, which has been fantastic for borrowers. Unfortunately interest rates are unlikely to stay this low for very much longer.

Interest Rates Set to Rise Mark Carney, governor of the Bank of England, has already said that interest rates will almost certainly rise to between 2.5 to 3 per cent over the next three years and they will probably stay there for some time. However, experts are warning that interest rates could rise before the next general election, which will happen within the next twelve months.

Protect Your Investment If this does happen as predicted, a lot of property investors could be caught out. Landlords who have borrowed against existing properties or come into the market fairly recently will suddenly find their monthly repayments rising steeply. One way to avoid this is to switch to a fixed rate deal and lock in for an extended period at today’s low interest rates. This will help protect your rental returns.


Related Posts

See All

Tenant demand has continued to increase

Sourced Properties Weekly List to Your Email inbox The August sentiment survey by Royal Institution of Chartered Surveyors (RICS) gauging the mood of agents, showed improvement in the lettings market.

Property Down Valued

In a recent survey by Bankrate UK, a mortgage comparison service, questioned buyers about their prospective purchases in the last 6 months in the UK. 46% revealed they had their prospective property d

Will Cardiff House Prices Crash?

House prices in the UK are starting to fall after 8 years of stable growth. This is according to recent house price indices. At the moment prices are still fairly stable, but market fluctuations have


bottom of page