Landlords are being urged to review what they are paying on their buy-to-let mortgages with rates expected to rise quickly following yesterday’s base rate increase.
Angus Stewart, chief executive of Property Master, the online broker for buy-to-let mortgages, said there are still deals to be done but advised landlords to check deals sooner rather than later.
He said: “We predicted when the Bank increased the base rate just ahead of Christmas last year that the starting gun had been fired on further increases in the New Year.
“Two hikes in the base rate in quick succession shows some urgency on the part of the Bank which is understandable given the spike in inflation and rising energy costs.
“We predict there is more to come.
“We would urge landlords to immediately review the rate they are paying for their buy-to-let mortgages.
“We expect Standard Variable Rates to rise in line with the new base rate very quickly. Likewise, those on tracker-type products will also see their costs rise very soon.
“The situation is more complex when it comes to fixed rate mortgages where there is still competition amongst lenders, especially when it comes to fixed term 5-year mortgages.
“There are deals to be done if landlords are in a position to move quickly.”
