Impact of UK interest rate rise for investors
On 02 November, the UK waited to find out whether or not the Bank of England governor Mark Carney was to raise the interest rate for the first time in a decade. Experts were predicting a rise following the historic lows reached shortly after the UK voted to leave the European Union last year, and they were correct, with the announcement coming shortly after midday that the UK interest rate was being raised by 0.25%.
This decision has provoked a mixed reaction amongst investors, according to crowdfinding and investing platform Intro Crowd. It says that for those investing to save, in an ISA for example, the interest rate rise is welcome, potentially increasing the saving capacity of their capital.
For those investing in property however, the interest rate decision could prove to be disadvantageous depending on the type of mortgage taken out by the investor. Those on a fixed rate mortgage may see little to no difference, however those without a fixed rate could experience an increase in monthly repayments, potentially an area of concern for those buy to let landlords currently maintaining empty properties, the firm says.
More traditional investments that are directly affected by changes in the financial markets may also experience some uncertainty while we wait for the fluctuation between Sterling and its peers to settle once again, it adds.
The advice from Intro Crowd is to have a diversified portfolio is one way in which to manage risk of loss from fluctuations in the market, and from economic changes such as the interest rate rise. When considering changes to your portfolio, it is always advisable to seek professional advice from a professional financial advisor.
Intro Crowd offers qualified investors the opportunity to come together to fund the purchase of undeveloped strategic land sites in the UK. These land sites are greenfield in classification, and are typically located close to existing settlements with good road access and access to amenities such as public transport, shops, schools and medical care.
These qualities make them sustainable in nature and can therefore be attractive to house builders for development. Once the land site is purchased, Intro Crowd’s expert team takes the land through the planning process, and if planning permission is achieved, will look to sell the site to a house builder for residential development.
For more information about strategic land, how Intro Crowd works, or to request a brochure, please contact Intro Crowd today on +44 (0)20 7118 4040 or email to [email protected]