So, what does this mean for property investors? Within the UK, it makes borrowing money much more appealing as you’ll get more favourable rates on buy to let mortgages. The government has made this move to sustain the economy in the coming months and to encourage spending rather than isolation – but could it mean more?
The pound is temporarily weakened
As you’d expect in a period such as this, the pound is weak compared to other currency around the world. This often happens in economic uncertainty, but it does present a unique chance for overseas investors. It means that property is comparably cheaper than it would have been several weeks ago. It encourages money to come into the economy as effectively; you get more back for your money.
If investors have been delaying decisions, especially regarding property, then it means now is the perfect time to consider the investment as they will need to spend less of their currency to purchase a property. This could work to considerable advantage as it also means that multiple properties could be owned, depending on financial liquidity. The challenge here is that the pound is likely to recover as a result so it would be advantageous to invest while you get more "bang for your buck".
UK Property Investors
The base rate being cut is also great news for UK property investors who are looking to secure buy-to-let mortgages as it means they will get more favourable terms. Stimulating the economy has long been a goal of the current government and encouraging people to take advantage of what is now an advantageous time to be borrowing should be a positive for the economy and the property market.
Property prices may see a slight decline as a result of the uncertainty, but we would suggest that there’s no better time to make financial decisions while others potentially wait around. When the economy recovers, and house prices increase again as they have in the property market – investors will wish they took advantage of the housing market when there were reduced demand and more favourable terms for borrowing.
If you’re looking to speak to a member of our team about your next UK property investment, then please do email us on email@example.com or call on 01942 251945