Interest Rate Falls "have helped economy"
13 May 2009
The decision by the Bank of England's monetary policy committee to bring interest rates down to record lows of 0.5% has helped the economy, according to one economic expert.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, agreed that renewed optimism has arrived within the property industry with the base rate being at "virtually zero".
Some people with buy to let mortgages may have found that their monthly repayments have dropped as a result of the interest rate coming down from 5.5% in 2008, which would have given them more disposable income to put back into the economy.
Warning consumers about the consequences of such a low cost of borrowing, Mr Rubinsohn suggested there is "a cost ... in the medium term".
"Interest rates, for one, will go up quite sharply at some point, as soon as the signs of recovery are underway in the economy," he explained.
Why not take a look at our best Buy to Let mortgages and make an enquiry online now.
YOUR HOME AND ANY PROPERTY USED AS SECURITY IS AT RISK AND MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE
Commercial Property Finance Consultancy Ltd is an Appointed Representative of Seddon Smith Financial Services Ltd which is authorised and regulated by the Financial Services Authority
© Commercial Property Finance Consultancy Ltd 2009. Web Design and Web Hosting by Otford.net
FAQ Glossary Links Mortgage Services Site Map Privacy Policy Accessibility Statement Buy to Let Mortgage Commercial Mortgage Bridging Loan Finance
Commercial Property Finance Consultancy
No Broker Fees
Enquiry Line
01923 676699
Over 30 years lending experience
