UK Property Investment And Increasing Mortgage Rates
As well documented, over 1000 UK mortgage products were pulled off the market recently…
And mortgage rates are projected to rise more in the coming weeks and months, not simply due to a rising base rate.
This will affect both owner-occupiers and property investors. Over 3 million homeowners will have their fixed-rate mortgages expire by the end of 2023.
It’s critical for investors to have some perspective. True, the Bank of England’s base rate was only 0.1 per cent a year ago, but it is currently 2.25 per cent and expected to rise further.
However, Buy To Let investors can still find competitive offers. Despite the fact that Nat West just eliminated their 5-year product at 3.89 per cent, there are still offers to be obtained.
No doubt, property owners have various hurdles ahead, but it’s all about the numbers and having a sound investment case.
Rents have grown steadily over the last year, by an average of £115 per month. Even if landlords absorb part of their increased borrowing costs, renters would eventually suffer the brunt of the expense through higher rents.
Data source: ONS, UK Finance, CMC Markets
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