The Bank of England has kept rates low for 18 months.
The Bank of England has voted to keep interest rates on hold at 0.5% amid concerns over the strength of the economic recovery. This is again further positive for expats who have Interest Only buy to let tracker UK mortgages where the continuing and historical low bank of england base rates allows the excess rental income to pay more off the capital outstanding. This also means the net rental yields from UK and London property is buoyed by the historically low interest rates.
The decision by the bank’s Monetary Policy Committee (MPC) means rates will stay at their current record low for an 18th month. Stuart Marshall from Liquid Expat Mortgage comments that whilst bank of England base rates have been historically low for over a year and a half and all the latest signals from the Bank of England suggest this to remain so for the foreseeable future, lenders are yet to reflect this in their pricing for two and three year fixed rate mortgages.
Inflation remains well above the bank’s target rate of 2% on the Consumer Prices Index (CPI) measure, at 3.2%
Expat whom are looking to remortgage from their lenders current standard variable rate should look at the available UK and Offshore tracker mortgages available to them and compare them against the available fixed rate mortgage.