Wednesday, 04 March 2015 00:00

Bank of England: All clear on interest rates?

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Bank of England: All clear on interest rates? Bank of England: All clear on interest rates?

Mark Carney, the Governor of the Bank of England, has recently delivered a number of high profile speeches explaining the complex factors resulting in his expectation that interest rates will no longer need to rise in the imminent future. In fact, as inflation hits a record low it is looking increasingly unlikely that the Bank’s base rate will increase from 0.5 per cent this year.

However, this does not mean that landlords can ignore the importance of ensuring that any finance secured against their portfolios is done so at the most appropriate rate.
Despite the historically low interest rates, held steady by the Bank of England since the last decade, the savings have not always been apparent in available mortgage rates. As many lenders sought to shore up their balance sheets following the credit crunch and expand their capital case to meet the requirements of various market reforms, lending rates in much of the market have seemed disconnected from the base rate - although this may be changing.
For the first time in a number of years there seems to be a level of competition between mortgage lenders for new business – consequently creating new, lower, lending rates.
While lenders may be tempted to introduce greater caution in their product development as the General Election approaches - after all who can honestly predict what impact a change of government could have – now is a good time to assess your rates and take a look around to make sure you are taking best advantage of what is available.
The NLA is working with partners to better understand landlords’ exposure to interest rate changes and preparedness for potential rises. As such we would like to invite you to take part in a short survey administered by our partners BDRC continental in association with TMW.

Read 1544 times Last modified on Wednesday, 04 March 2015 13:08

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