Why the BOE Base Rate Isn’t the Full Story on Fixed-Rate Mortgages
Published on: 03/12/2024
Demystifying Base Rates, Swap Rates and SONIA: Why They Matter for Property Investors
Finance
Demystifying Base Rates, Swap Rates and SONIA: Why They Matter for Property Investors
In simple terms, a yield is the amount of money or profit produced by an investment. It has two elements to it – the original price of the investment and the money earned over a time period. The ratio between these two is the yield, often expressed as a percentage. It is a statistic that tells us something about the investment, can be used to compare one investment with another and can be used to measure against our own personal yield targets.
It seems to be many people’s goal in life to retire by having a pension and paying off your mortgage. Then you can kick back and enjoy life with no money troubles, right? Well, maybe not...