Interest rates rising?

The Bank of England is likely to raise interest rates in the “coming months” to dampen down inflation, Bank of England Governor Mark Carney has signalled. Speaking at the International Monetary Fund’s headquarters in Washington yesterday, he reaffirmed that any rate rise would be at a gradual pace. Carney said: “If the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure then, with the further lessening in the trade-off that would imply, some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target.” He added: “Any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent, and to be consistent with monetary policy continuing to provide substantial support to the economy.” He also talked about Brexit, which he said would cause inflation to rise and have a worsening effect the longer it takes to secure new trade deals.

As a landlord you will know only too well how profitability has been hit by the Governments tax changes of late.

If interest rates are to rise as Mr Carney is suggesting it is vital to ensure your current mortgage deal will meet the challenges ahead. Not all landlords will benefit from a full review but it is worth checking the following:

If you would like to review your current mortgage/s then please make contact and one of our advisers will be happy to help.