Lineas London- Monday, Jan 24, 2022
LATEST: Successful year ahead for buy to let borrowers
The year 2022 is expected to be another successful year for buy to let mortgages as tens of thousands of fixed-rate mortgages are due for renewal.
Lenders are rubbing their hands with glee as fixed-rate terms for mortgages written between December 2016 and January 2018 will expire this year and landlords start hunting for a new rate. The mortgage market is expected to become even more competitive as landlords try to find new deals to keep their repayments low whilst the Bank of England increase interest rates to fend off rising inflation.
The Bank of England increased the official interest rate to 2.5 per cent last month (from 2.35 per cent). This is the highest rate since March 2020 when the rate plunged from 0.75 per cent down to just 0.1 per cent.
The hike seems to have had little effect on buy to let mortgages, with the average deal floating around a 1.68 per cent interest rate mark according to figures from mortgage monitor, Property Masters. However, with inflation expected to keep rising in the short term, lenders anticipate that mortgage rates will float up with them.