If you’re a property investor or you’re thinking of making your first buy-to-let purchase, there are a lot of positives that come from this news of interest rate cuts.
For those who plan to fund their investment with a buy-to-let mortgage, you could see lower monthly repayments and better cash flow. This ultimately will result in a better return on investment, with investors being able to profit from larger portions of rental income each month.
Market resilience also means good things for capital growth. Savills already updated its Residential Market Forecast earlier this week, with some huge predictions in store for average UK property prices. The North West is set to remain in the lead for five-year capital growth, with an anticipated 31.2% rise by 2029, up from the previous 29.4% growth prediction.
Investors keen to maximise capital growth returns and rental yields could take advantage of the current market and utilise lucrative investment opportunities in key UK areas.
Matt Smith, Rightmove mortgage expert, comments on the possible outlook for the rest of the year:
“The market expects there will be one more Bank Rate cut before the end of the year, with an outside chance of two. Any further cuts would likely see this cycle repeat again – with lenders using it as an opportunity to reduce rates a little more. It bodes well for the second half of this year, with further mortgage rate reductions and stable prices likely to encourage more activity.”
