Landlords hoping for reduction in buy to let mortgage rates
Landlords are keeping their fingers crossed for a reduction in buy to let mortgage rates following the 0.5 per cent base rate cut announced by the Bank of England.
Landlords are hoping that yesterday's surprise 0.5 per cent cut in base rates by the Bank of England will translate into lower rates on buy to let mortgages.Before the announcement, many commentators were expecting a half percentage point cut and Smartlandlord.co.uk said it would like to see this passed on to those letting property.
"Many landlords who were on low fixed rates for the past few years have been struggling once their mortgages reached the end of the fixed rate," said managing director Keshav Thukaram.
He said most landlords have had to move to higher variable rates because of the shortage of buy to let mortgages available on the market.
A 0.5 per cent cut would provide them with "welcome relief" amid the current mortgage market conditions, he remarked.
The Bank of England's monetary policy committee held a special meeting yesterday during which it cut the base rate to 4.5 per cent, citing deteriorating credit conditions and a sharp slowdown in economic activity.
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