Buy-to-Let mortgages set to fall….
Online mortgage broker is predicting a fall in the cost of fixed rate buy-to-let mortgages now that the Conservatives have been elected, and a settled Brexit course is set.
The cost of fixed rate buy-to-let mortgages is already down on the rates prevailing at this time last year, in some cases by up to £38 per month for the average mortgage.
Before the Conservative victory the downward trend was beginning to stall, but is now likely to resume again.
There have been a slew of rate cuts amongst lenders along with new offers being launched that are looking very attractive to landlords wanting to expand their portfolios or needing to remortgage. Good news on rates may well entice some landlords back into the market by helping them offset the many recent regulatory and tax costs they have been struggling to absorb.”
In terms of predicting the outlook on interest rates it clearly has never been more difficult. Brexit uncertainty is continuing, and it would appear the financial markets are taking the latest comments from the Bank of England to signal a cut in rates in the light of a disorderly exit from the European Union. If Brexit goes smoothly and some kind of deal is reached then we are more likely to see rates rise in line with the plans to normalise interest rates that the Governor of the Bank of England outlined some time ago.
The Bank of England Monetary Policy Committee (MPC) last met on the 19th of December and decided to maintain the base rate set on August 1st at 0.75%.