When will interest rates rise?

For landlords the most important financial metric has to be interest rates.  This defines what the cost of lending will be and lending costs for most landlords are by far their largest outgoing.

Interestingly, Mervyn King's parting shot this week at the all party Treasury Committee was that interest rates will not return to normal any time soon.

Current markets show that the 10 year lending rate is 2.5% and that latest projections are that the first increase to 0.75% has not been penciled in until the Summer of 2015.  All this means that landlords such as myself who have many of their mortgages fixed to the base rate should be jumping for joy.
Who would have thought that 5 years on from the economic crisis landlords would still be looking at  interest rates on the fall.

Long may it continue!

Read the latest Bank of England Financial Stability Report

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