Landlords have been told that if they want a fixed-rate mortgage to help them through the current financial crisis they will almost certainly have to wait.
Angus Stewart, chief executive of online broker Property Master, warns that the majority of buy to let lenders have withdrawn their products following the financial market meltdown after the government’s mini-Budget.
“The squeeze on private rental sector landlords continues from all angles, higher borrowing costs and recent increased regulation has created an unprecedented level of uncertainty. Even the latest tax cuts from the Chancellor Kwasi Kwarteng mini budget on September 23 could be now reversed.
“The fear now is that we will see many landlords choosing to exit the market and thus resulting in a reduced supply of private rented property will add still further to the pressure on rents.
“We are seeing buy-to-let mortgage products removed from the market at an unparalleled level. We have also seen some newer entrants to the BTL mortgage market withdraw their products as they have been unable to source their usual funds from institutional lenders. This is extremely worrying for the sector. We face reduced choice in the buy-to-let market which will in turn have a further impact on the rising cost of mortgages.
“We advise landlords to secure fixed rate mortgages when they become available again given that the market expect further base rates in the coming months.”
And he concludes that with the Bank of Englands base rate predicted to rise to 6.0 per cent within the next year it is in landlords’ interest to act sooner rather than later
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This is just one problem in many for landlords, at the moment I can see many of us not wanting to purchase any more properties, selling probably… buying 😬
I decided to remortgage my buy to let nearly 2 years early incurring an early repayment charge of £14000, when it became clear early on that Liz Truss was going to win the leadership election as economists predicted this very scenario. Currently waiting for the mortgage offer to come through any day now but I fear that the interest rate that was ‘locked in’ when I applied may now be withdrawn or they’ll just reject the application so they don’t have to honour it. Frankly don’t know how I’ll afford a much higher interest rate when there is the energy crisis to contend with too. I have a HMO so I pay the energy bills.
Yep. I'm going to sell some of my properties. Quadruple interest rates making my non deductable finance costs unaffordable. I cannot pass any of these costs on to my customers due to a rent rise moratorium. What other sector has finance costs treated in this way, what other sector has price control. If energy companies can charge what they want and government step in with funding why can't they do this in the property rental sector?
Shelter is surely as important as heating.
Our tenants will have to hope that we are able to weather this storm. Otherwise choice will be sell the property or put the rent up significantly.
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