Investors Must Consider Possibility of Future Rate Rises

Property investors in the UK have been urged to consider the possible implications of future rate rises following the Bank of England's decision to hold the base rate a 0.5 per cent for the 18th month in a row....

Property investors in the UK have been urged to consider the possible implications of future rate rises following the Bank of England's decision to hold the base rate a 0.5 per cent for the 18th month in a row.

Experts claim that a future rise is now inevitable and real estate buyers should factor this in to their decision making process when purchasing property in the country.

The news raises interesting questions surrounding lending rates in countries in economic recovery and could lead to mortgages becoming more expensive for investors.

One way for existing homeowners to avoid an increase in charges is by changing to a fixed mortgage scheme, Simon Gammon, head of property consultant Knight Frank’s finance department, suggested.

"I do not expect the base rate to rise until the second quarter of next year, given the ongoing concerns about the economy," he added.

"It could, however, make sense to take advantage of the current opportunity to fix rates at favourable long term rates before they increase."ADNFCR-3415-ID-800060151-ADNFCR

- Monday 13 September 2010

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