2020 Budget & Buy To Let
Today has seen the Bank of England cut the base rate from 0.75% to 0.25%, meaning borrowing has become even cheaper. The opposite effect this will have on peoples savings is likely to cause people to act on making their money work for them.
This announcement is likely to prompt lenders to lower fixed Buy To Let and standard mortgage interest rates as more and more people will be seeing extremely poor performance from savings.
So what can this mean for the housing market and more importantly the Buy To Let market?
Whilst lower interest rates will mean wider affordability for homeowners, the strict policies and strict criteria many First Time Buyers face are still in place therefore only truly helping those who have managed to buy already. With strict lender criteria remaining unaffected, we do not see any change coming from the amount of First Time Buyers entering the market.
Buy To Let on the other hand can flourish once again. With lowered interest rates the stress testing used for Buy To Let purchases will become easier to satisfy. We always recommend a “greater than lender” stress test is used for any Buy To Let investment, this will go a long way to ensure the longevity of any Buy To Let purchase.
With the Bank of England base rate now at an all time low, we recommend anyone with savings should start to explore avenues of greater returns which will help towards future plans and retirement.
For expert guidance on Buy To Let properties which are attractive and will show healthy returns, please do not hesitate to contact us.
We will provide the support for you to make a measured and informed decision on Buy To Let properties.