Yesterday, the Bank of England made a welcome announcement for many UK homeowners and prospective buyers that the base interest rate has been reduced again to 4.75%, marking a positive shift in the current economic climate.
So what does this mean for homeowners and those looking to buy?
We would advise our landlords to consider looking at re-mortgaging to get a better interest rate. With property prices now at their highest point ever, there is usually plenty of equity in the properties we manage, which means landlords could get a better deal. Further, for those seeking to buy, now is the time to start moving away from 3-4% saving rates and more towards the 7-8% rental yields that many properties on the market offer. Historically, over time, properties go up in value. As such investing in BTL results in a better yield than savings and down the line will give you capital growth and gains.
Upcoming legislative changes are understandably causing concern among landlords, however, don't let this deter you from the potential rewards of property investment. Our expert team is here to navigate these complexities and ensure your investments remain secure and profitable.