When will intertest rates return to traditional levels?

Discussion in 'General Property Investment Discussion' started by Longterminvestor, Mar 19, 2018.

  1. Longterminvestor

    Longterminvestor Administrator

    Since the 2008 US mortgage crisis, which led to a worldwide crisis, interest rates in the UK have remained at near record lows. While the trend has changed, with rates edging higher, when will we return to more traditional levels? Also, when rates do eventually rise to historic averages, how many people will struggle to cover their increased mortgage interest payments?
     
  2. FWL

    FWL Member

    Personally I think we will be waiting a very long time for interest rates go back to “traditional” levels. Aside from the fact that quantitative easing has not been unwound, how would a significant increase in interest rates impact those who stretched their finances to the limit with property purchases in the current low interest rate environment?
     
  3. realdeals

    realdeals Active Member

    Dont hold your breath for this! Investors have been feasting on low interest rates/cheap finance for a decade now. Many of them would seriously struggle if base rates suddenly jumped. Central banks around the world will need to be very very cautious about increasing base rates. They will likely give the markets plenty of warning - as we have seen in recent times in the US and UK.
     
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