Good news on interest rates

Interest rates could be held at 0.5% until 2014 according to a recent article in Thisismoney.

Low interest rates is great news for many landlords with buy-to-let mortgages secured on their rental properties. The downside is that rates will remain at their record low whilst the Bank of England still fears a double dip in house prices & potentially the UK descending into a deflationary spiral.

The Bank of England's base rate has now been fixed at 0.5% since March 2009. This is the lowest rate since the Bank's creation in 1694.

The accountant Ernst & Young's Item Club forecast the rate may remain there for another four years.

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