Landlords are being offered fresh advice if they have been hit with higher interest payments following the base rate rise to 4.0 per cent.
Angus Stewart, chief executive of online buy to let specialist broker Property Master, says: “We again advise landlords to look to ensure that they are not sitting on the lender’s SVR and paying a premium. There are mortgage products available without early redemption fees and for those concerned about locking themselves into a fixed term this is a sensible option.
“We would recommend utilising online comparison tools … which can identify suitable products including those without ERC’s. Our platform provides the very latest BTL mortgage deals and assesses these against lenders’ criteria and affordability checks.”
He adds: “Longer term interest rates are reducing from their peak lessening the significant margin we were seeing between fixed and variable rates. Lenders are introducing new fixed rate products which are looking more competitive when compared to discount and tracker rates.
“With many landlords coming to the end of fixed term products this year while there is still a significant increase in rate from their old fixed term it is still in their interests to look for a new mortgage product (either fixed or discounted) rather than go onto the lender’s SVR. ”
Stewart says that the mini budget last year - which prompted the rapid removal of many buy-to-let mortgage products by nervous lenders - has now worked itself out of the system.
He concludes: “The key challenge for many landlords is meeting the affordability requirements given the higher product rates resulting in tougher stress tests.”
Yesterday the Bank of England increased base rate to 4.0 per cent - its highest level for 14 years and the 10th rate rise on the trot.
This latest rise means people with a typical tracker mortgage will pay about £49 more a month while those on a variable mortgage will pay another £31 a month
The BoE says the UK is still set to enter recession this year, but this will be shorter and shallower than previously thought
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So, a named mortgage broker advises landlords to get a new mortgage product, under the category: ‘breaking news’ 😂
Nonsense advert for their services, all I will be doing is putting the rent up 💵💵
Fresh advice?? No, just the very old advice that anyone with a mortgage needs to shop around for the best deal, which is unlikely to be current lender's SVR.
Pointless article, plus a lot of Landlord's cannot shop around as the interest rate rise for some will mean that you do not meet the lending requirements to get a re-mortgage.
I know some of mine will be effected like this even when I put up the rent.
Section 24 needs to go.
You are right, lenders requirements seem extreme now and I am also having to put rents up more than I would have.
We need to go on strike
Lets all get together and super glue ourselves to the road in Downing Street, be a good day out
Pointless advertorial.
When I need their advice I’ll let them know
ie ; never
So lenders now want all your loans in one place, rolled into one to have full control over you.
You could be right now Michael, wasn't like that in the 70s, 80s, & 90s, but I have no personal experience of loans since the 90s so I couldn't say
The other issue I have become aware of is, its the best LL’s with the best properties who have looked after their Tenants with reasonable rents are now suffering the most.
The Removal of Section 21, the Mammoth of Regulation’s and Quadrupling of Interest rates put some under pressure to the point a Sale is necessary.
Initially most Tenants were willing to vacate, until they tried to find alternative accommodation but nothing available for anything like the Rent they were paying so they stayed put.
Forcing landlords to go through the legal process causing delays spending thousands of pounds on legal fees and getting deeper in trouble.
Some stupid White Paper thank you. Mr Michael Gove you haven’t a clue.
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