With the recent increase in the UK base rate there may be a few people questioning if now is the right time to invest in property. With more and more people looking for alternative ways of securing their financial future, many of them are turning to property investment both in the UK and Overseas. Historically UK property prices have doubled in value every 10-15 years and with the continual shortage of housing, coupled with the increasing rate of divorce and less mortality this is likely to continue. It's also worth remembering that as an increasing number of immigrants arrive in Britain looking for employment and better opportunities for themselves, that these people also need housing and more often than not, this will result in a requirement for rented accommodation.
With these important factors taken in to account it is likely that property investors and landlords will continue to capitalize on the opportunities that exist in this market. It is for these reasons alone that they are normally undisturbed by rises in interest rates. A rise in interest rates often results in slower activity in the owner occupier market whilst they contemplate whether it is a good time to be buying or selling.
For landlords and property investors the buy to let mortgage market has become very competitive and a vast range of products are now available. Some even offer up to 90% loan to value giving the landlords and investors the ability to purchase more property whilst having to invest as little as just 10% of their own funding.
Overall, owner occupiers, landlords and property investors are all affected by an increase in the base rate but it is less likely that the landlords and property investors will be put off from buying additional properties for their portfolios as they are aware of the trends in the property market and will be looking at the long term financial gains rather than the peaks and troughs that are experienced from time to time. If you are new to buy to let then pick up a buy to let guide or perhaps book yourself on a property course where you can find out as much as you need to get you started.
