The Bank of England’s monetary policy committee meets again today with strong expectations that they will agree their 14th successive base rate rise.
With the rate currently at 5.0 per cent the only debate appears to be whether the rise will be to 5.25 per cent or 5.5 per cent.
UK Finance, the trade body representing the significant majority of mortgage lenders, says there are some 2.04m buy to let mortgages still outstanding in the UK.
Of those, 1,346,990 or 66 per cent are on fixed rate mortgages so are unlikely to feel the effect of today’s rise - unless, that is, they are about to see their fixed duration end.
Some 14 per cent, or 291,583 BTL mortgages are on tracker rates, while 18 per cent, or 362,596 mortgages, are on standard variable rates.
Most economists polled by Reuters last week predicted that rates would rise to 5.25 per cent today and peak at 5.75 per cert in the autumn, although that is not a unanimous view. BoE Governor Andrew Bailey has insisted that it is “crucial we see the job through” to curb inflation.
The numbers of arrears and possessions across all tenures and mortgages types remain at low levels and UK Finance expects that the number of households in arrears in 2023 to remain below one per cent of outstanding mortgages.
In addition, 46 mortgage lenders representing over 90 per cent of the mortgage market have signed up to the government’s new Mortgage Charter, committing them to additional support for borrowers.
This includes giving customers approaching the end of a fixed-rate mortgage the chance to lock in a deal and request a better like-for-like deal if rates change up to six months ahead, and a guarantee of no possession within 12 months of your first missed payment.
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Not sure but maybe they will be bold and hit us with a 0.5 rise 😱, a shock they should have done a year or more ago.
Some corruption lies and hypocrisy. The Article says the 46 Mortgage lenders representing 90% of Mortgage’s have signed up to Government’s Charter to help borrowers.
Telling us this at the same time the Government is spending £10m to oppose Landlords in Court so that it will cost him £15k to use the Court process to get a Tenant out.
So no Control left for Landlords and required to lie to get a license, one of the questions is have you Control of the Property.
So much overcrowding and sub-letting going on, caused by regulation’s and licensing Schemes it didn’t happen in the decades before, out of control some are making so much they can well afford to buy their landlords out.
We don't hear anything in the news about these sub-letting tenants who are cheating their flatmates - or about the criminals who make a business out of taking a tenancy and then subletting it to others at an extortionate rate - and then they don't even pay the low rent to the landlord that was agreed.
And as you so rightly point out, Michael, it is licensing which means that some flats will have empty bedrooms which allow this type of behaviour to go on.
Nobody supports landlords, so the rogue tenants can have a field day in exploiting others. In fact, there will probably be a way found to blame the landlord.
Inflation is some kind of stealth tax. For as long as we foot the bill for arming Ukrainians for continuation of the war and seven sisters oil cartels Shell, BP, Texaco, Chevron, Elf, Exxon and Mobile are making trillions, I am afraid you should expect more and more hardship to come.
Bankers deciding to increase their profits or not.. Mmm. They are allowed to control their prices whilst me as a landlord in Scotland is not allowed.
Increasing interest rates in a supply side inflation situation is in itself inflationary. Are there no actual economists in this moronic government.
Today's decision will determine how much my October rent rises will be. Earlier in the year I had hoped to restrict rises to 7% as that was what Social Housing rises were capped at. My rationale was that anything lower would be treating my tenants like charity cases, inflation is higher, almost all of them had had pay rises, any on UC should be able to get a DHP as the Council certainly couldn't argue an increase that matched their own. Higher increases would have just given the government even more tax to waste and made absolutely certain I would be in the 60% tax bracket.
However, the BoE has shown no restraint, clearly doesn't understand the time lag with interest rate rises and whatever they do I will be stuck with for 5 years on a fixed mortgage. The numbers just don't stack on shorter term fixes due to the product fees and rolling onto the SVR would be eyewatering.
Rent rises that I had hoped would be £50 per person per month may have to be £70 or £90 depending on today's decision. Section 24 just magnifies the problem and the only winner in this is HMRC.
Add in the injustice of a new selective licensing in Nottingham which will add £23 to every rent rise & the rise becomes huge!
You have to do it Tricia. It protects both you and the tenant. God willing we get through this as there is a lot at stake.
Jahan, I absolutely will. I have told the tenants & the council very clearly that tenants pick up the cost of SL. NCC repeatedly say 'LLs will absorb the cost' even though LLs repeatedly tell NCC we will not! The last scheme put Nottingham at the top of the list for increasing rent in that year for just this reason!
They want to increase the interest rates, add Landlord Licensing and then introduce rent cap controls, after removing our wear and tear allowance, our tax relief and the whole 9!
These politicians are incredibly stupid.
Without a doubt I am liquidating my portfolio.
First going to rent them with a hands-free company like keyzy for landlords, and sell them in the future.
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