Financing your property
This historic step gives landlords greater certainty to move forward with their investment decisions. The answer to the question as to whether to go for a fixed rate mortgage or a variable one may be clearer than ever before. Cleverly, Carney has not tied his hand to fixing rates for a set period. Experts are currently predicting that the unemployment rate will remain above 7% until 2016.
Government strategy clear
The strategy of the coalition government has been clear from the outset. Encourage inflation and lending so to avoid, deflation and thereby inflate away the huge debt. Inflation is a debtors best friend as it reduces the size of the debt providing other factors remain the same. This is all good news for many landlords who are heavily geared and for whom their biggest expense remains their buy to let mortgage payments. Although rents have failed to keep up with inflation but fortunately for landlords they have outstripped debt repayments which have stayed the same or even reduced giving an ever increasing margin and rental profit.