UK interest rates
The big news this week is that the Bank of England has cut interest rates by a massive 1.5% down to just 3%, this is the biggest cut since 1955!! So what does this mean to we property investors?
It means that the cost of mortgages should fall a little over the coming months, especially as Prime Minister Gordon Brown is putting pressure on to ensure the rate cut is passed on to customers.
All in all that means investors should be able to buy cheaper houses (a 2.2.% fall in house prices in October), with a lower mortgage rate and yet still benefit from increasing rental demand and prices. This means investors have a great opportunity to find bargain properties that generate and impressive positive monthly cashflow!
Heres a news summary from the last week:
* Fri 7th Nov – Brown pressures banks over rates (news.bbc.co.uk)
* Thu 6th Nov – ‘No rush’ to cut mortgage costs (news.bbc.co.uk)
* Thu 6th Nov – UK interest rates slashed to 3% (news.bbc.co.uk)
* Thu 6th Nov – House prices down 2.2% in October (news.bbc.co.uk)
* Thu 6th Nov – Bovis warns of tough conditions (news.bbc.co.uk)
* Wed 5th Nov – First-time buyers turn to parents (news.bbc.co.uk)
* Tue 4th Nov – Pass on rate cuts, MPs tell banks (news.bbc.co.uk)
* Mon 3rd Nov – Rental market reaches all time high across UK cities (news.bbc.co.uk)
Now is still the best time to invest!
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