Many landlords are basking in the after glow of yet another month of record breaking low interest rates after the Monetary Policy Committee decided in it's March meeting to keep rates at 0.5% for the 12th month in a row.So where next?
The MPC meets today at midday. What are the chances that rates will be heading up soon?
A recent poll of economists by Reuters indicated that many of the 64 economists polled did not expect rates to rise until the 4th quarter of 2010.
A poll taken at the end of February predicts a rise to 0.75% in December and then to 1.25% by around Feb/March of 2011, reaching 2.25% by the end of 2011.
Landlord insurance
Of course we all know that the margins that the banks/lenders are making at the mo are huge.
ReplyDeleteWould the housing market and the landlord sector survive an increase as steep and quickly like this or will lenders have to reign in and adjust and except lower margins above the bamk base rate. What I am feed up with is the Banks..... we bail em out, their margins increase on property interest rates and we all suffer again when the interest rates rise.