Interest Rate Rise Causes Deeper Problems for Buy to Let Investors
Milestead, United Kingdom, November 18, 2006 --(PR.com)-- The latest rise in UK interest rates will add further problems to an already difficult buy to let marketplace. The recent boom in the UK property market has been good news for all those already involved with property investment.
However, the huge increases in property values means that today's first time landlords are being forced to pay significantly higher purchase prices for suitable investment properties. Choosing the right Buy to Let mortgage with the lowest possible interest rate could make all the difference when weighing up a potential investment.
Each time interest rates increase, the less money becomes available to borrow. Philip Flanagan of Lets Mortgage It.com explains: “The amount you can borrow when buying a property to let out depends, amongst other factors, on how much rent the property generates, as well as the interest rate used by the lender to calculate the funds they are willing to offer. Higher interest rates mean lower mortgage offers and therefore higher deposits are required.”
Higher interest rates create a double squeeze on potential investors. The first being a reduced offer and the second, in that once an investor owns a buy to let property, higher monthly mortgage payments eat away at the potential financial returns.
Peter Christopherson, a broker with Lets Mortgage It.com, comments: “Using an experienced mortgage broker who has access to the whole buy to let mortgage market could be the solution. The specialist broker will have access to all investment mortgage deals on offer, many of which are not available on the high street.
“Investors should also be aware that there may be further UK base rate rises in the months ahead. Existing buy to let borrowers, whose mortgages are currently on discounted or variable rates, could also benefit hugely by having their current mortgage deals reviewed against the current investment mortgages available,” continues Peter Christopherson.
About
Philip Flanagan and Peter Christopherson are directors of Lets Mortgage It.com and write the LMI Mortgage E-Club newsletter. You can also find additional mortgage tips and news at www.letsmortgageit.com. Email:- info@letsmortgageit.com
###
However, the huge increases in property values means that today's first time landlords are being forced to pay significantly higher purchase prices for suitable investment properties. Choosing the right Buy to Let mortgage with the lowest possible interest rate could make all the difference when weighing up a potential investment.
Each time interest rates increase, the less money becomes available to borrow. Philip Flanagan of Lets Mortgage It.com explains: “The amount you can borrow when buying a property to let out depends, amongst other factors, on how much rent the property generates, as well as the interest rate used by the lender to calculate the funds they are willing to offer. Higher interest rates mean lower mortgage offers and therefore higher deposits are required.”
Higher interest rates create a double squeeze on potential investors. The first being a reduced offer and the second, in that once an investor owns a buy to let property, higher monthly mortgage payments eat away at the potential financial returns.
Peter Christopherson, a broker with Lets Mortgage It.com, comments: “Using an experienced mortgage broker who has access to the whole buy to let mortgage market could be the solution. The specialist broker will have access to all investment mortgage deals on offer, many of which are not available on the high street.
“Investors should also be aware that there may be further UK base rate rises in the months ahead. Existing buy to let borrowers, whose mortgages are currently on discounted or variable rates, could also benefit hugely by having their current mortgage deals reviewed against the current investment mortgages available,” continues Peter Christopherson.
About
Philip Flanagan and Peter Christopherson are directors of Lets Mortgage It.com and write the LMI Mortgage E-Club newsletter. You can also find additional mortgage tips and news at www.letsmortgageit.com. Email:- info@letsmortgageit.com
###
Contact
Lets Mortgage It.com
Philip Flanagan
08700 112 400
www.letsmortgageit.com
Philip Flanagan
08700 112 400
www.letsmortgageit.com
Contact
Categories