Base Rate remains at 0.5% for a second month - 07.05.2009

Author: Michael Aglony Posted on: 07 May 2009

No surprise that the Bank of England have kept Base Rate at 0.5% for another month. Time will tell whether the Bank’s Quantitative Easing programme will have the desired effect of boosting the supply of funds in the market but, dare I say it, there appears to be some stability returning to the market. It would not surprise me to see Base Rate remaining at 0.5% for the next 12 months!!

The availability of mortgage products is also improving. Great rates are now available for your own residential mortgage and we are also helping a number of property investors who are now looking to snap-up bargains and expand portfolios. Our message continues to be that now is the time to act whether you are looking to purchase or remortgage. Buy to Let fixed rates, and residential fixed rates have bottomed out and whilst Base Rate is expected to stay low for some time, the cost of longer term funds is on the rise. If you are looking for stability during the next interest rate cycle and want to lock in for say 3 or 5 years you will need to move quickly.

You can also keep an eye out for further news via our Buy to Let Blog and residential blog as well as e-mails over the coming days and weeks.

 

Author: Michael Aglony