Mortgage rates are now at an all-time low point in the UK.
In 2019 average mortgage rates fell over 2% and continue to slowly decline.
The Economist in an article last month pointedly referred to property being one of the major beneficiaries of the current low interest rate environment.
“Low interest rates also mean that high asset prices are all but guaranteed. Homeowners, mostly drawn from the professional classes, will benefit as they can take advantage of cheaper mortgages. So will homebuyers”.
The current base rate for mortgages in UK is 0.1%. A record low point and it is likely to stay at this level well beyond 2021.
Average mortgage rates hover above and below the 3% mark depending on type of mortgage and loan to value ratios.
Rental yields in Central London for investment property average 4% right now.
Backed by a solid asset, a zone two or zone three investment flat displays mathematics that look very compelling.
Looking back in ten years from today it will seem ridiculous if we do not buy as much of this asset class as we can afford today.
Remember the quote from the Economist – “Low interest rates also mean that high asset prices are all but guaranteed …….”
GIHLondon also have a dedicated mortgage desk with over 100 mortgage banks to access.
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