Property Advisors Warn 0.5% Base Rate Not Normal
Property experts are currently advising buy to let investors to not get too used to the benefits which accompany low base rates.
Speaking on the UK’s current base rate of 0.5%, Paula John from property portal Your Mortgage is now advising property investors to remember that such low base rates are not the norm for the property market.
Look back over its history, and investors will soon find that the UK base rate is normally set around the 5% mark. However, because it has remained at 0.5% for so long, property advisors are concerned that property investors and homeowners alike are forgetting this history and will be angry when they rise again…
According to a new report published by the Policy Exchange, interest rates may have to go as high as 8% in the next 2 years to help keep inflation down – a rise that could greatly affect property investors who haven’t anticipated such an event when investing in property.
Because of this, property advisors are telling investors to begin preparing for this eventuality now so that such rises won’t come as a surprise.
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- Base rate could rise on Thursday
- No change to UK base rate
Tags: buy to let investors, investing in property, property advisors, property experts, property market, property portal
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