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View Full Version : Doom for house prices



Sysman
22nd December 2010, 11:15
Interest rates 'will have to rise sixfold in two years' (http://www.telegraph.co.uk/finance/personalfinance/8212723/Interest-rates-will-have-to-rise-sixfold-in-two-years.html)


he Confederation of British Industry predicts that higher than anticipated rises in the cost of living will push the Bank of England (BoE) to begin increasing interest rates in the spring.

It predicted that the Bank base rate – the interest rate at which the BoE lends to other banks – will rise more than two percentage points by the end of 2012. Mortgage rates are expected to follow closely behind.

Do I see the chance of BTLs becoming cheap to acquire here? As long as you aren't borrowing to do it of course.

Doggy Styles
22nd December 2010, 11:23
Can I be selfish here? I've nearly paid off my mortgage, so this would suit me down to the ground.

Sysman
22nd December 2010, 11:27
I think selfish is allowed.

"I'm alright Jack" isn't.

Doggy Styles
22nd December 2010, 11:34
OK, I'll tread that line carefully.

scooterscot
22nd December 2010, 11:37
My BTL mortgage is 0.5% above rate. 3.5% is going hurt my wine cellar bad at least a few bottles per month. I'll just increase the rent to compensate.

Sysman
22nd December 2010, 11:45
My BTL mortgage is 0.5% above rate. 3.5% is going hurt my wine cellar bad at least a few bottles per month. I'll just increase the rent to compensate.

For existing BTL owners, it's certainly time to do a few what-ifs on your spreadsheets.

The best remedy of course is to keep invoicing.