Why High Mortgage Interest Rates May Be a Positive for Landlords
It’s no secret that the multiple consecutive increases to the Bank of England (BoE) base rate, currently at 5%, have had a significant and sometimes dramatic impact on borrowing costs, not least for homeowners with variable-rate tariffs. The same applies to landlords, with current rates on buy-to-let mortgages hovering at around 6% for five-year fixed terms and as high as 7% or above for two-year fixed mortgage agreements. However, while many will welcome the predictions that interest rates will begin to fall as we progress through the year, there are also indications that professional landlords have seen some unexpected benefits. Demand for quality rental properties has continued to be incredibly high. The strained mortgage market has generated a reluctance to buy while rates are high or sell when the housing sector has begun to cool. Many prospective buyers have put their plans on hold, adding to the ever-growing need for more rental accommodation. Changes to the UK Ren