According to a February 2018 PropertyWire.com article, financial experts have predicted that the Bank of England will raise the interest rate again in 2018, and this could happen more than once before the end of the year.
In November 2017, the Bank of England raised its base rate from 0.25% to 0.5%, marking the first increase in 10 years. At the time, the Bank of England warned that further increases could occur during the next three years.
At the last meeting of the Bank of England Monetary Policy Committee, it held the interest rate at 0.5% but said that rates could soon rise. If there are further rate rises in 2018, they are not expected to be more than 0.25% each time.
The next meeting of the Monetary Policy Committee is on March 22, when a rise is unlikely. The next meeting after that is on May 10, and this is when analysts believe rates could be increased. Some financial experts have speculated that the Bank could raise interest twice in 2018. Other experts believe that there could be three increases.
If there are three rate rises in 2018 and each goes up by 0.25%, the Bank of England interest rate will be 1.25% by the end of the year. Rate increases will increase the interest paid on commercial mortgages, but mortgage rates will still be at historically low levels. As long as commercial property investors plan for small rises in their interest payments, their business should not be significantly affected.
It may be possible to remortgage commercial property at a lower interest rate. A mortgage broker may be able to find a better mortgage deal.