Rising house prices could mean a hike in interest rates

The rise in UK house prices is good for anyone with investment property. Many BTL owners were savaged when property prices fell forcing them into negative equity. The only thing that has kept many landlords “on the log” was the drop in interest rates to unbelievably low levels. levels we had never seen before in the UK.

Now we have good news and bad news. The good news is property prices are rising across most of the country. London is leading the way with 18 per cent annual gains. Rents are also very strong right now. The bad news is that if the economy continues to recover this could well mean a rise in interest rates. As I wrote last month, my banking connections say they expect to see a rise in base rates of between 2 and 3 per cent over the next three years. Not wanting to point out the blindingly obvious but if you’re currently paying 3 per cent on your mortgage and rates go up a further 3 per cent, your mortgage has just doubled. Not many people can handle that kind of increase.

We all like to see our equity in our property rise but now is the time to make sure you are left high and dry when base rates start to rise. Work out what each one per cent rise will mean for your household cash flow and consider looking at a fixed term rate to limit the damage. It’s no good waiting until the Bank of England announces a rate rise – by then the best deals will have gone.

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6 Comments

  • At £100 to double-you’re not really competing with large scale seasoned professionals.

    Once you go down the doubling numbers you begin to compete in effect with institutions and or Goverment policy etc(as that kind of continual doubling becomes an Intrest to the other 7 billion people and stated Goverment)

    As a result-after a handful of these ‘doubling’ moves…the ability and time and competing positions from other investors and said governments etc just make the ability a compounded hardness.

    Hopefully as we become more sophisticated we can enjoy these posts but realise they are like any other headline….attention seeking!

    • I’m afraid that none of that is even remotely true, Gerry. Remember, DYWTAM was written by not one, but two, multi-millionaires using these very techniques. I suspect that you’ve been ripped off in the past by the many “get rich quick schemes” that are out there. That’s a real shame. Having done all of the fourteen levels myself, (and I watch others do the same every week), I feel highly qualified to disagree with every single one of your comments. If you’re not rich now then you have to change your thinking if you want to make serious money. Here’s the thing; “If you keep doing what you’ve always done – you’ll keep getting what you’ve always got”. Stop and think about that for a minute. I don’t know if you live in a two million pound house but if you don’t, here you are telling someone who does that this won’t work. Really? The DYWTAM Programme is a genuine no-nonsense guide on how to become a millionaire – and absolutely anyone can do it.

  • Barry, is it only 10 issues of Double your way to a Million? A friend of mine who is interested wants to know, thanks.

  • hi barry i am interested in your horse racing course and your recommendation of using isiris,i understand kevin booth has resigned from isiris do you still recommend we use this company still thank you,and also i notice on your websitethat it is still dated 2017 .

    • Good question. I have not used the Isiris service recently. I had a brilliant 11 year run but eventually I got closed down by all the bookmakers. I guess that’s a real sign of success but it was fun to do and I actually miss it. I did not know that Kevin had actually retired but I understand that the results this year have been extremely good. Maybe regular readers who still use Isiris can update me on that one and let me know how they are doing.

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