Will Your Buy To Let Interest Rate Go Up Or Down? Key Dates Coming Up In March And May 2018
Date Published 14 February 2018
The Bank of England`s Monetary Policy Committee (MPC) recently voted unanimously to keep its base rate at the current level of 0.5%.
The announcement is good news for buy to let landlords, especially those on tracker rate products, as historically base rate increases have preceded hikes in mortgage interest rates.
Andrew Turner, chief executive at Commercial Trust Limited, had this to say: `This is positive news for landlords. There has been much speculation that the Bank of England MPC will increase rates during 2018, due to the growth of inflation and the threat of an overheating economy. Indeed, the Bank of England has hinted this will be the case over the coming years"
This is the second consecutive meeting to maintain the current rate, after the MPC increased it by 0.25% in November 2017. That decision resulted in some buy to let mortgage lenders increasing their mortgage interest rates, adding costs to monthly repayments for landlords on tracker and variable rate mortgages.
For many landlords, this was the first mortgage rate rise they had experienced, as the base rate had not increased in a decade. But, it should be remembered that current mortgage interest rates remain at historically low levels.
This announcement gives landlords more time to assess their property investments and to evaluate whether or not to take advantage of these low rates by remortgaging, in anticipation of any future rates changes. The next two MPC meetings are scheduled for March 22nd and May 10th.
Here at novahomes we look at this very carefully with our financial partners. As landlords and business owners ourselves we have a keen interest. If you plan to retain your investment property then now is a good time to discuss what remortgage options are open to you before 22nd of March.
Equally if you are considering selling or are not on a fixed rate mortgage then now could be a good time to see what value is in your asset. We can offer a free market valuation of your property. Call us today on 01752 206040 Option 1 For Sales