BTL Mortgage News and Views for Landlords

It seems the rise of Skipton's standard variable rate (SVR) has paved the way for other building societies to raise their rates. Your emails came in thick and fast after last week's newsletter, letting me know that other building societies like Mansfield Building Society have raised theirs; also, you contacted us to let us know that lenders like Norwich & Peterborough have relatively high SVRs anyway.

So, your next line of action seems quite clear. If you're in doubt about whether you are overpaying in the current market, then just give us a call. After all, as we always say, the money is better in your pocket than the lenders - and if you don't tell them it's too expensive by moving away, they certainly won't tell you!

Buy To Let - 5 year fixed rate.

The last few months have shown little desire by the lenders to introduce any long term fixes to the market. Now even though I've been bending the ear of the top brass at BM Solutions for a while now about the need to give us a decent long term fixed rate, even I was surprised they released one this week.

The challenge for you, the investor, is how you see the market and interest rates panning out within the medium term. I suppose the two main views are:

1. Rates are low at the moment and will continue to be low for the foreseeable future - therefore what's the point of fixing at a higher rate now.

OR

2. You're keen to lock into a long term fixed rate now, because:

a. when rates do start to rise, it is likely that the long term fixed rates that are available are more expensive than what they are now.

b. you can forget about the fluctuations of interest rates over the next 5 years and concentrate on managing your portfolio.

Now this decision is made easier by a number of factors: For example, if you have a property which is 95% loan to value with a pay rate of 0.75% on a HMO then stay where you are - please!

However, if you are on a standard variable rate with a loan to value 75% and under, then read this (I've put this in bold in case you don't read anything but big bold type):

If you're on the standard variable rate with your current lender then give Pete or Gary a call NOW. 01424 205 373

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