ad

UK base rate set to rise in New Year

Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Mark Carney, the Governor of the Bank of England, has given his strongest indication to date that UK base rates will begin to rise in the New Year. In a major policy speech at the Lincoln Cathedral he spoke of UK rates rising to around 2.5% over the next three years. While this is a [...]

Click to Read The Full Story and Add your Own Comments to UK base rate set to rise in New Year
 
C

Crosbyhome

New Member
Uk's economy is still one of the weakest growing within the uk. that, together with possible EU referendum, I'd bet there be no change in the interest rates
 
R

Ricky Bhurji

Member
Premium Member
Hi Crosbyhome, You could be right. However, the US did shock everything with their rate increase in December...

It has to happen sometime... The key is to factor this into the investment and if you are still making good returns factoring in higher rates - then keep buying!
 
Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
I agree @Ricky Bhurji

Factoring in a good buffer always or perhaps start thinking about 3yr+ fixed rate loans to protect your cash flow.

We have several 20 year fixed rate loans so a large part of my portfolio is protected.

I personally wouldn't bother with any fixed rate loan less than 3-5 years at the moment as I don't think rates will rise enough for you to earn back the premium you've paid for the fixed rate loan...
 
P

PropEx

Member
I agree @Ricky Bhurji

Factoring in a good buffer always or perhaps start thinking about 3yr+ fixed rate loans to protect your cash flow.

We have several 20 year fixed rate loans so a large part of my portfolio is protected.

I personally wouldn't bother with any fixed rate loan less than 3-5 years at the moment as I don't think rates will rise enough for you to earn back the premium you've paid for the fixed rate loan...
Are they still even doing 20 year fixed rate loans? I thought it would be hard enough to get a 10 year one, let alone a 20 year one.
 
P

PropEx

Member
Just saw 10 minutes ago that Carney has said that there is no need for a rise in rates now. Did we not all know that at the end of last year though? I know now that it may be 2017 until they raise them, but I don't think anybody thought that they would be raised in the first half of this year. My money is still on the 3rd or 4th quarter of this year.
 
Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Are they still even doing 20 year fixed rate loans? I thought it would be hard enough to get a 10 year one, let alone a 20 year one.
Yes absolutely, I've moved 4 loans to a main commercial lender this year on 20 year fixed rate deals...
 
Top