0.25% adds £12 a month to a £100,000 repayment mortgage
The Property Master mortgage tracker is one of a few reasonable indicator to show the mortgage industry behaviour. Property Master mortgage tracker follows a range of buy to let mortgages for an interest only loan of £150,000. The rates and costs recorded include product and application fees and cover 18 of the biggest lenders.
Landlords who are on a tracker mortgage which is directly linked to interest rate variation’s will find that an extra 0.25% adds £12 a month to a £100,000 repayment mortgage and £25 on a £200,000 loan.
Landlord are likely face paying more for new mortgages
Buy to let landlord are likely face paying more for new mortgages as new data shows that August’s 0.25% increase in base rate has begun to feed through to the products available, pushing rates upward.
‘The move by the Bank of England to normalise borrowing rates following the last market crash seems to be truly underway and it is beginning to feed through to buy to let mortgage rates which up and until now have been relatively stable,’ said Mr Angus Stewart, the CEO of Property Master’s.
‘However, private landlords, especially those on standard variable rates that have seen a big jump in cost month on month, should really be carefully evaluating their finance requirements,’ he pointed out.
‘Whilst increased competition has helped to keep costs down to some extent the trend is now upwards and we would expect keenly priced fixed rates to be snapped up,’ he added.
Mr Alexandra Morris, managing director at MakeUrMove said “Clearly, this rate rise is now an added pressure which could be the tipping point that means a large number of landlords decide they have to pass on their additional costs to tenants in order for it to remain viable for them to let their properties.
“The government are currently sleepwalking into an ever deepening housing crisis and the Bank of England base rate rises are adding to the burden felt by many landlords.
“This is particularly concerning when private landlords provide a vital role as the backbone of the UK housing market.”