The Telegraph have run an article on landlords suffering with the mortgage rate rises.
It can be seen here (subscription might be required), stating that ‘Landlords stuck on variable rate mortgages are seeing their profits vanish as lenders increase their bills as much as five times in six months.
It goes to say ‘The Bank of England has raised interest rates four times in total so far this year, opting last week to raise the Bank Rate by a further 0.25 percentage points to 1.25pc. Mr O’Dell has not yet been updated on the impact of this latest rate rise announced last week, which means his costs are likely to rise further.’
putting the landlord business model at risk
Ending ‘Chris Sykes, of mortgage brokers Private Finance, said the rate rises, coupled with the Government’s plans to introduce new tenant protections, is putting the landlord business model at risk.
“I have seen several accidental landlords leave the market because it is no longer profitable and they are worried about about further rate rises eating away at their already slim margins once taxes are taken,” said Mr Sykes.