I was live on local radio BBC Tees discussing the latest rates and what you can do about it, answering questions live from listeners

MORTGAGE RATE RISES - What does it mean for you?

Joe Hodgson founded Hodgson Financial after many years working in property industry as both a mortgage broker and estate agent. 

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Joe Hodgson

We are most likely going to see some high increases in rent in coming months, this is due to landlords coming out of 2-3% interest rates onto 5-6% rates now, if we look at a £150,000 mortgage on an interest only basis that was on a fixed rate of 2% but now is fixed at 5.5%, that’s a £437 per month increase in mortgage payments that the landlords will have no choice but to pass this increase onto the tenants. The buy to let market has slowed significantly in recent weeks, landlords can no longer easily obtain a mortgage to purchase, this is due to lenders implementing high stress test calculations.&nbsp; Put simply if we looked at a £100K mortgage 2 months ago the required rental income a lender would need to see to accept this would have been around £572pm, now that rental valuation figure for the same loan amount would need to be above £832pm for most but the rental market hasn't caught up to this level meaning getting a new BTL mortgage is incredibly difficult, especially in the south. &nbsp;<blockquote>The rate increases will impact everyone, not just home owners.</blockquote>

Interest rate rises will affect tenants, not just home owners!

Joe Hodgson founded Hodgson Financial after many years working in property industry as both a mortgage broker and estate agent.

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