Latest Interest Rate Hike – August Housing Market Update

In this Property Education video, Simon Zutshi, author of Property Magic, founder of property investors network (pin), and successful property investor since 1995 talks about Interest Rates On the Rise Again 2023, with the latest bank of England interest rate rise to 5.25% and the impact it has on your UK Property Investing.

Will interest rate go up again? This is a question many property investors and home owners are asking particularly those on variable mortgages, some of whom have seen their monthly mortgage payments triple over the past 18 months.

If home owners cannot afford to pay their mortgage this might leads to an increase in property repossessions, combined with the fact that more and more landlords are selling up there will be an increase in property available for sale, which could lead to a property market crash if people are not able to buy property due to the high interest rates and problem with mortgage affordability.

In times of uncertainty, where we see falling property prices like in the last property market crash in 2008, when it can be difficult to arrange mortgage finance, savvy property investors are using tools such as Lease Option agreements and vendor finance to acquire property without the need for investment mortgages or even large deposits.

What has worked over the past 12 years for property investors may not be the most appropriate investment strategies for the next few years. It’s really important to keep up to date with changes in the property market.