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Savers Turning to Buy-to-Let

Tuesday, 14th June, 2016

Plummeting interest rates could see people turning to the buy-to-let market to boost their security later in life, experts have said.

Savers relying on their pension pots will be worse off than ever before with new record lows in the rates, caused by the Bank of England slashing its base rate during the credit crunch.

Despite hopes that the situation would begin to improve, it has deteriorated further and is affecting things such as ISA's and easy-access accounts particularly. 

Perhaps more importantly, the precarious state of the Bank of England is certain to worry those relying on their dwindling savings or pensions and nest eggs to see them through retirement.

On the other hand, the news will be welcomed by those with additional mortgages, making it cheaper to borrow.

With little light at then end of the financial tunnel, the incentive to buy a second home to help provide security will now look even more attractive.

This comes despite the controversial introduction of a 3% hike in stamp duty and the equally unpopular plans for a reduction in tax relief set to be phased in from 2017.

Frustrating Time for Savers

A spokesman for the British Bankers' Association said:

"These have been frustrating times for savers. The Bank of England's base rate has remained at a record low for several years. While this has been good news for borrowers, it has fostered a low-interest environment which has not been easy for many savers to bear."

And while anxious savers brace themselves for more financial blows, the buy-to-let market is surely a far more sturdy and tangible option that can lead to a regular income stream.

For more information please visit www.scottishlandlords.com.


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