18th
Sep 2023
Landlords are now having to resort to borrowing more in their efforts to stave off the dire effects of the 19 per cent mortgage loans hikes in the last twelve months.
A property finance lender’s latest study analysed BTL landlords’ number of properties and how much their mortgage debt stood at.
Its findings shows in the last year the amount owed in BTL mortgages has increased from £467,548 per landlord in Q1 2022 up to £558,423 in Q1 this year.
The Bank of England’s warned in July that landlords and tenants will be having to face a ‘big squeeze’ brought on by rising interest rates.
The research found the average BTL loan held by a landlord has also risen by 12 per cent from its previous average of 6 to 6.7 per cent.
The region which has seen the highest increase in amount owed in the twelve months is the West Midlands with a massive 49 per cent ‘hike’.
The South East has had an increase of 49 per cent in the average number of BTL loans and the East of England at 29 per cent more, and of course this goes hand in hand with a dramatic rise in the total amount owed as the South East has a 95 per cent increase and the East of England with a 90 per cent rise.
Only the North West and Wales have a reduction in the total amount owed with a minus 22 per cent and a minus 37 per cent respectively, which also sees a fall in the average number of BTL loans held by landlords at 16 per cent in the North West and minus 3 per cent across Wales.
Jonathan Samuels of the property finance lender, says: “While it’s clear that a lot of landlords are willing to saddle more debt in order to keep their operation moving, it’s inevitable that a significant number will either downscale their ambitions, or jump ship entirely.”
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