17th
Jun 2022
Yesterday’s (Thursday 16th June) Bank of England’s threatened base rate increase along with incoming Renters Reform Bill is going to hit landlords hard.
The O.25 per cent increase is the fifth rise in the same number of months and takes the base rate to 1.25 per cent which is the highest it has been since 2009’s 5.04 per cent.
Angus Stewart of an online buy to let mortgage broker, says: “All the members of the Bank’s Monetary Policy Committee voted to increase the base rate last month, and three of them went for a half point rise then. Since that time there has been no let-up in the inflationary pressures we have seen in the economy so it looks as if the Bank has decided to continue to slam on the brakes.
“Our own tracker of the buy-to-let fixed rate mortgage market shows landlords even before this news are paying up to £133 per month more for a typical mortgage.
“Given that the Bank of England’s own forecasts have talked about the base rate rising to 2.5 per cent by the middle of next year there is a lot more to come. For some landlords it may well be worth paying an early redemption fee now to exit their current fixed rate if it is already near the end and lock in a deal now before rates move upwards again.”
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