Mortgage Stability UK

Buy-To-Let Mortgage Costs Remain Stable.

After some time, there appears to be some mortgage stability on the horizon.

According to the website ‘Property Investor Today‘, the cost of mortgages on a buy-to-let basis have remained “mostly unaffected by the second phase of Prudential Regulation Authority changes” .

Stability is much needed during these uncertain times ahead. If you are currently in the process of acquiring, or considering a mortgage to buy a property, read on.

It is also important to do your research on the news about rising interest rates on our previous blog post.

mortgage stability
Mortgage UK

Mortgage Stability

When you read the article about rising interest rates, note that LTV means “loan-to-value”, and  BTL means “buy-to-let”.

According to the article:

“The only product that now costs more is a five-year fixed BTL mortgage, which currently has a rate of 4.09% and is now 2% more expensive than it was three months ago…”

There is more specific information provided in the article. It is advised that it is read and understood.

If you do not understand the terms within the article, here is a link to Keystone IMC Ltd website to better understand mortgage related terms and phrases with this glossary of mortgage terms.

All of this can be almost like a foreign language to some people. Understand how this information will affect one with an existing mortgage, or if you are considering one.

If you learn more about mortgages and mortgage related terms, you are better prepared before you proceed.

If you are considering a buy-to-let mortgage, definitely investigate further.

It is reassuring that the the cost of mortgages on a buy-to-let basis have remained mostly unaffected, but time will tell how things transpire.

In conclusion, if you are either considering to get a mortgage, or have an existing mortgage, the Property Investor Today article is definitely worth a read.

 

Interest Rates Rising UK

UK Interest Rates on the Rise Since July 2007.

First of all, the interest rates rising is a topic of discussion in the UK. We need to understand that the UK had a good 10 year run with interest rates set at 0.25%. Interest rates are now rising!

Hence, there was a boom in the buy-to-let property market.

As a result, the interest rates have risen in the UK.

interest rates rising
Rising Interest Rates 2017

Interest Rates Rising Confirmed

According to Mark Carney, the Bank of England governor;

“For the first time in over 10 years, the Bank of England has raised interest rates…”

It can be confirmed that the official bank rate has now been raised from 0.25% to 0.5%.

Source: http://www.bbc.co.uk/news/business-41846330

This will affect buy-to-let Landlords with mortgages on their properties. If you have a property that you are renting, you need to ensure you can pay the mortgage.

According to the Guardian, and the ratings agency Moody’s; “…it warned that the outlook for the buy-to-let market has worsened significantly.”

The article also; “… warned landlords to expect falling rental income, particularly in London and the south-east, while rising taxes will also make it more difficult for landlords to cover their mortgage payments.

To read more about the effect of the interest rates rising, visit the Guardian via the source link below:

Source: The Guardian 

Metropolitan and Crown Estate Agent Ltd offers Guaranteed Rent to Landlords covering rental void periods. Do not let this scare you. However, being prepared is a must. For Landlords, our guaranteed rent scheme may be a suitable option for your property’s future.

To conclude, the interest rates are now on the rise at 0.5% and will rise at least twice in the next couple of years. It is advisable to understand what is happening in the property market.

Ensure that you take measures to ensure you are not adversely affected in the future.