Is Being A Landlord Still Viable With Rampant Interest Rates
Business News
It has been well documented in the media for the last 6 months or so that inflation and high interest rates are caused havoc in the markets and normally property is very closely linked to market performance. In March 2023 the Bank of England raised interest rates for the 11th time since December 2021 taking the base rate up to 4.25%. Obviously, this level of interest has a major impact on people who are borrowing with mortgages and credit cards being those that are most affected.
Are Mortgages and Buy To Let Mortgages Still Viable
Typical rental yields are at around 5% which means that if the market value of properties and therefore rental amounts doesn’t increase then you are losing a large part of your profit. The 4.25% base rate means that you will only be making 0.75% on your investment. If however house prices do go up …


