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Why are Interest Rates so Important?

Private landlords in the UK are always keen to know what the Bank of England is doing with interest rates. The Bank of England base rate is the rate at which it lends money to the commercial banks that provide landlords with their mortgages.

This interest rate then feeds into the rate that is offered by the banks when lending to landlords for a mortgage. This means that landlords - and indeed any homeowner with a mortgage - are preferably looking for the base rate to be as low as possible, to ensure they get a lower mortgage rate.

For landlords, a lower mortgage rate means lower repayments and more profit from their buy to let. For portfolio landlords, a lower mortgage rate may enable them to grow their buy to let business even further, by freeing up capital to invest in another property or complete refurbishments, or allowing them to take a further cash advance on their mortgage.

The below table highlights the current interest rate as well as how the Bank of England base interest rate has changed since January 1985.

Month Base Rate Change
Jun-17 0.25% No Change
May-17 0.25% No Change
Apr-17 0.25% No Change
Mar-17 0.25% No Change
Feb-17 0.25% No Change
Jan-17 0.25% No Change
Dec-16 0.25% No Change
Nov-16 0.25% No Change
Oct-16 0.25% No Change
Sep-16 0.25% No Change
Aug-16 0.25% Down 0.25%
Jul-16 0.50% No Change
Jun-16 0.50% No Change
May-16 0.50% No Change
Apr-16 0.50% No Change
Mar-16 0.50% No Change
Feb-16 0.50% No Change
Jan-16 0.50% No Change
Dec-15 0.50% No Change
Nov-15 0.50% No Change
Oct-15 0.50% No Change
Sep-15 0.50% No Change
Aug-15 0.50% No Change
Jul-15 0.50% No Change
Jun-15 0.50% No Change
May-15 0.50% No Change
Apr-15 0.50% No Change
Mar-15 0.50% No Change
Feb-15 0.50% No Change
Jan-15 0.50% No Change
Dec-14 0.50% No Change
Nov-14 0.50% No Change
Oct-14 0.50% No Change
Sep-14 0.50% No Change
Aug-14 0.50% No Change
Jul-14 0.50% No Change
Jun-14 0.50% No Change
May-14 0.50% No Change
Apr-14 0.50% No Change
Mar-14 0.50% No Change
Feb-14 0.50% No Change
Jan-14 0.50% No Change
Dec-13 0.50% No Change
Nov-13 0.50% No Change
Oct-13 0.50% No Change
Sep-13 0.50% No Change
Aug-13 0.50% No Change
Jul-13 0.50% No Change
Jun-13 0.50% No Change
May-13 0.50% No Change
Apr-13 0.50% No Change
Mar-13 0.50% No Change
Feb-13 0.50% No Change
Jan-13 0.50% No Change
Dec-12 0.50% No Change
Nov-12 0.50% No Change
Oct-12 0.50% No Change
Sep-12 0.50% No Change
Aug-12 0.50% No Change
Jul-12 0.50% No Change
Jun-12 0.50% No Change
May-12 0.50% No Change
Apr-12 0.50% No Change
Mar-12 0.50% No Change
Feb-12 0.50% No Change
Jan-12 0.50% No Change
Dec-11 0.50% No Change
Nov-11 0.50% No Change
Oct-11 0.50% No Change
Sep-11 0.50% No Change
Aug-11 0.50% No Change
Jul-11 0.50% No Change
Jun-11 0.50% No Change
May-11 0.50% No Change
Apr-11 0.50% No Change
Mar-11 0.50% No Change
Feb-11 0.50% No Change
Jan-11 0.50% No Change
Dec-10 0.50% No Change
Nov-10 0.50% No Change
Sep-10 0.50% No Change
Aug-10 0.50% No Change
Jul-10 0.50% No Change
Jun-10 0.50% No Change
May-10 0.50% No Change
Apr-10 0.50% No Change
Mar-10 0.50% No Change
Feb-10 0.50% No Change
Jan-10 0.50% No Change
Dec-09 0.50% No Change
Nov-09 0.50% No Change
Oct-09 0.50% No Change
Sep-09 0.50% No Change
Aug-09 0.50% No Change
Jul-09 0.50% No Change
Jun-09 0.50% No Change
May-09 0.50% No Change
Apr-09 0.50% Down 0.50%
Feb-09 1.00% Down 0.50%
Jan-09 1.50% Down 0.50%
Dec-08 2.00% Down 1.00%
Nov-08 3.00% Down 1.50%
Oct-08 4.50% Down 0.50%
Sep-08 5.00% No Change
Aug-08 5.00% No Change
Jul-08 5.00% No Change
Jun-08 5.00% No Change
May-08 5.00% No Change
Apr-08 5.00% Down 0.25%
Mar-08 5.25% No Change
Feb-08 5.25% Down 0.25%
Jan-08 5.50% No Change
Dec-07 5.50% Down 0.25%
Nov-07 5.75% No Change
Oct-07 5.75% No Change
Sep-07 5.75% No Change
Jul-07 5.75% Up 0.25%
Jun-07 5.50% No Change
May-07 5.50% Up 0.25%
Apr-07 5.25% No Change
Mar-07 5.25% No Change
Feb-07 5.25% No Change
Jan-07 5.25% Up 0.25%
Dec-06 5.00% No Change
Nov-06 5.00% Up 0.25%
Oct-06 4.75% No Change
Sep-06 4.75% No Change
Aug-06 4.75% Up 0.25%
Jul-06 4.50% No Change
Jun-06 4.50% No Change
May-06 4.50% No Change
Apr-06 4.50% No Change
Mar-06 4.50% No Change
Feb-06 4.50% No Change
Jan-06 4.50% No Change
Dec-05 4.50% No Change
Nov-05 4.50% No Change
Oct-05 4.50% No Change
Sep-05 4.50% No Change
Aug-05 4.50% Down 0.25%
Jul-05 4.75% No Change
Jun-05 4.75% No Change
May-05 4.75% No Change
Apr-05 4.75% No Change
Mar-05 4.75% No Change
Feb-05 4.75% No Change
Jan-05 4.75% No Change
Dec-04 4.75% No Change
Nov-04 4.75% No Change
Oct-04 4.75% No Change
Sep-04 4.75% No Change
Aug-04 4.75% Up 0.25%
Jul-04 4.50% No Change
Jun-04 4.50% Up 0.25%
May-04 4.25% Up 0.25%
Apr-04 4.00% No Change
Mar-04 4.00% No Change
Feb-04 4.00% Up 0.25%
Jan-04 3.75% No Change
Dec-03 3.75% No Change
Nov-03 3.75% Up 0.25%
Oct-03 3.50% No Change
Sep-03 3.50% No Change
Aug-03 3.50% No Change
Jul-03 3.50% Down 0.25%
Jun-03 3.75% No Change
May-03 3.75% No Change
Apr-03 3.75% No Change
Mar-03 3.75% No Change
Feb-03 3.75% Down 0.25%
Jan-03 4.00% No Change
Dec-02 4.00% No Change
Nov-02 4.00% No Change
Oct-02 4.00% No Change
Sep-02 4.00% No Change
Aug-02 4.00% No Change
Jul-02 4.00% No Change
Jun-02 4.00% No Change
May-02 4.00% No Change
Apr-02 4.00% No Change
Mar-02 4.00% No Change
Feb-02 4.00% No Change
Jan-02 4.00% No Change
Dec-01 4.00% No Change
Nov-01 4.00% Down 0.50%
Oct-01 4.50% Down 0.25%
Sep-01 4.75% Down 0.25%
Aug-01 5.00% Down 0.25%
Jul-01 5.25% No Change
Jun-01 5.25% No Change
May-01 5.25% Down 0.25%
Apr-01 5.50% Down 0.25%
Mar-01 5.75% No Change
Feb-01 5.75% Down 0.25%
Jan-01 6.00% No Change
Dec-00 6.00% No Change
Nov-00 6.00% No Change
Oct-00 6.00% No Change
Sep-00 6.00% No Change
Aug-00 6.00% No Change
Jul-00 6.00% No Change
Jun-00 6.00% No Change
May-00 6.00% No Change
Apr-00 6.00% No Change
Mar-00 6.00% No Change
Feb-00 6.00% Up 0.25%
Jan-00 5.75% Up 0.25%
Dec-99 5.50% No Change
Nov-99 5.50% Up 0.25%
Oct-99 5.25% No Change
Sep-99 5.25% Up 0.25%
Aug-99 5.00% No Change
Jul-99 5.00% No Change
Jun-99 5.00% Down 0.25%
May-99 5.25% No Change
Apr-99 5.25% No Change
Mar-99 5.25% Down 0.25%
Feb-99 5.50% Down 0.50%
Jan-99 6.00% Down 0.25%
Dec-98 6.25% Down 0.50%
Nov-98 6.75% Down 0.50%
Oct-98 7.25% Down 0.25%
Sep-98 7.50% No Change
Aug-98 7.50% No Change
Jul-98 7.50% No Change
Jun-98 7.50% Up 0.25%
May-98 7.25% No Change
Apr-98 7.25% No Change
Mar-98 7.25% No Change
Feb-98 7.25% No Change
Jan-98 7.25% No Change
Dec-97 7.25% No Change
Nov-97 7.25% Up 0.25%
Oct-97 7.00% No Change
Sep-97 7.00% No Change
Aug-97 7.00% Up 0.25%
Jul-97 6.75% Up 0.25%
Jun-97 6.50% Up 0.25%
May-97 6.25% Up 0.25%
Apr-97 6.00% No Change
Mar-97 6.00% No Change
Feb-97 6.00% No Change
Jan-97 6.00% No Change
Dec-96 6.00% No Change
Nov-96 6.00% No Change
Oct-96 6.00% Up 0.25%
Sep-96 5.75% No Change
Aug-96 5.75% No Change
Jul-96 5.75% No Change
Jun-96 5.75% Down 0.25%
May-96 6.00% No Change
Apr-96 6.00% No Change
Mar-96 6.00% Down 0.25%
Feb-96 6.25% No Change
Jan-96 6.25% Down 0.25%
Dec-95 6.50% Down 0.25%
Nov-95 6.75% No Change
Oct-95 6.75% No Change
Sep-95 6.75% No Change
Aug-95 6.75% No Change
Jul-95 6.75% No Change
Jun-95 6.75% No Change
May-95 6.75% No Change
Apr-95 6.75% No Change
Mar-95 6.75% No Change
Feb-95 6.75% Up 0.50%
Jan-95 6.25% No Change
Dec-94 6.25% Up 0.50%
Nov-94 5.75% No Change
Oct-94 5.75% No Change
Sep-94 5.75% Up 0.50%
Aug-94 5.25% No Change
Jul-94 5.25% No Change
Jun-94 5.25% No Change
May-94 5.25% No Change
Apr-94 5.25% No Change
Mar-94 5.25% No Change
Feb-94 5.25% Down 0.25%
Jan-94 5.50% No Change
Dec-93 5.50% No Change
Nov-93 5.50% Down 0.50%
Oct-93 6.00% No Change
Sep-93 6.00% No Change
Aug-93 6.00% No Change
Jul-93 6.00% No Change
Jun-93 6.00% No Change
May-93 6.00% No Change
Apr-93 6.00% No Change
Mar-93 6.00% No Change
Feb-93 6.00% No Change
Jan-93 6.00% Down 1.00%
Dec-92 7.00% No Change
Nov-92 7.00% Down 1.00%
Oct-92 8.00% Down 1.00%
Sep-92 9.00% Down 1.00%
Aug-92 10.00% No Change
Jul-92 10.00% No Change
Jun-92 10.00% No Change
May-92 10.00% Down 0.50%
Apr-92 10.50% No Change
Mar-92 10.50% No Change
Feb-92 10.50% No Change
Jan-92 10.50% No Change
Dec-91 10.50% No Change
Nov-91 10.50% No Change
Oct-91 10.50% No Change
Sep-91 10.50% Down 0.50%
Aug-91 11.00% No Change
Jul-91 11.00% Down 0.50%
Jun-91 11.50% No Change
May-91 11.50% Down 0.50%
Apr-91 12.00% Down 0.50%
Mar-91 12.50% Down 0.50%
Feb-91 13.00% Down 1.00%
Jan-91 14.00% No Change
Dec-90 14.00% No Change
Nov-90 14.00% No Change
Oct-90 14.00% Down 1.00%
Sep-90 15.00% No Change
Aug-90 15.00% No Change
Jul-90 15.00% No Change
Jun-90 15.00% No Change
May-90 15.00% No Change
Apr-90 15.00% No Change
Mar-90 15.00% No Change
Feb-90 15.00% No Change
Jan-90 15.00% No Change
Dec-89 15.00% No Change
Nov-89 15.00% No Change
Oct-89 15.00% Up 1.00%
Sep-89 14.00% No Change
Aug-89 14.00% No Change
Jul-89 14.00% No Change
Jun-89 14.00% No Change
May-89 14.00% Up 1.00%
Apr-89 13.00% No Change
Mar-89 13.00% No Change
Feb-89 13.00% No Change
Jan-89 13.00% No Change
Dec-88 13.00% No Change
Nov-88 13.00% Up 1.00%
Oct-88 12.00% No Change
Sep-88 12.00% No Change
Aug-88 12.00% Up 1.50%
Jul-88 10.50% Up 1.00%
Jun-88 9.50% Up 2.00%
May-88 7.50% Down 0.50%
Apr-88 8.00% Down 0.50%
Mar-88 8.50% Down 0.50%
Feb-88 9.00% Up 0.50%
Jan-88 8.50% No Change
Dec-87 8.50% Down 0.50%
Nov-87 9.00% Down 0.50%
Oct-87 9.50% Down 0.50%
Sep-87 10.00% No Change
Aug-87 10.00% Up 1.00%
Jul-87 9.00% No Change
Jun-87 9.00% No Change
May-87 9.00% Down 0.50%
Apr-87 9.50% Down 0.50%
Mar-87 10.00% Down 1.00%
Feb-87 11.00% No Change
Jan-87 11.00% No Change
Dec-86 11.00% No Change
Nov-86 11.00% No Change
Oct-86 11.00% Up 1.00%
Sep-86 10.00% No Change
Aug-86 10.00% No Change
Jul-86 10.00% No Change
Jun-86 10.00% No Change
May-86 10.00% Down 0.50%
Apr-86 10.50% Down 1.00%
Mar-86 11.50% No Change
Feb-86 11.50% No Change
Jan-86 11.50% No Change
Dec-85 11.50% No Change
Nov-85 11.50% No Change
Oct-85 11.50% No Change
Sep-85 11.50% No Change
Aug-85 11.50% No Change
Jul-85 11.50% Down 1.00%
Jun-85 12.50% No Change
May-85 12.50% Down 0.25%
Apr-85 12.75% Down 0.75%
Mar-85 13.50% Down 0.50%
Feb-85 14.00% No Change
Jan-85 14.00% No Change

 

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By Sandra Mpouma
15 Aug 2017

Categories: Upad Landlord Tips

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