Friday, March 06, 2009
Another week. Another record rate cut this time to 0.5%. Well effectively zero. So are landlords going to see a flood of sub 5% or even 4% buy-to-let mortage products on the market. Sadly not!
Landlord insurance - professional discounted rates through Property Hawk
I fear that the cut will have little impact on the cost of landlord credit and actually reflect more of the dia predicament the UK government is in in terms of kick starting lending within the housing and buy-to-let sector.
Best rates continue to be provided by the Mortgage Works who as part of the Nationwide, one of the few 'solvent' financial institutions can make hay along with the other 'old school' building societies. Meanwhile their bigger flashy brothers the big lending banks sit in the corner with a big Dunces hat on muttering:
"We must not lend imprudently, we must not lend imprudently" a thousand times. All this before the class of public opinion and the headmaster and personification of imprudence itself Mr Brown.
The only sub 5% rates currently available are through the Mortgage Works.
I will off course be updating you next week on how the lenders respond to the latest cuts but landlords, it's probably not time to get too excited just yet.