Bank of England Interest Rate reduction to one per cent

The Bank of England announced yesterday, 5th February 2009, that it had reduced its base borrowing rate to an historic 1%.

"Entrepreneurs across the UK will welcome the news as growing businesses require capital and whilst we are experiencing an equity drought, borrowing to grow is the only way" explained Mark Mills

Mark is a big fan of buy-to-let property owning his own portfolio. "There's never been a better time to buy houses to rent out. Prices are suppressed, there are few occupier buyers and interest rates are historically low. If you can find a small house in an urban area for £100,000 and rent it for £150 per week, taking into account your deposit, you should be earning 7.5% (with borrowing likely to be at 1% base plus a margin of 1.5%)."

Mark Mills asks "What are you waiting for? Why keep cash in the Bank? Do you honestly think that in the medium and long term, house prices won't rise?"

Mark gives individual tuition on buy-to-let and is happy to hear from any investor interested.