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Buy to let mortgage rates

Journalist: Melissa Lawford, The Telegraph

ended 02. June 2023

How much higher do you think buy-to-let mortgage rates will rise? How problematic will the new rise in B2L mortgage rates be for landlords coming to the end of fixed rate deals? Are you seeing landlords selling up because they can't afford to remortgage? Where are landlords most affected by higher rates?

4 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Buy to Let rates will continue to increase if the base rate does gravitate beyond its current level. But the current low levels of both remortgage and purchase Buy to Let applications are also major factors in their pricing strategy. Those with specialist lending needs, like HMO and portfolio lending, will see the greatest increases, as those lenders are normally exposed to the Swap rate movement. Still, the likes of The Mortgage Works, BM Solutions and Santander will try to minimise those increases by using other funding options, and using increased Product Fees to counterbalance rate increases, simply to make the products fit any ICR calculations.
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Aaron Strutt
Product and Communications Director at Trinity Financial
Some of the lenders have really pushed up their buy to let rates over the last few days and already fed up landlords will be even more frustated when they see how much some the mainly specialsit lenders are charging.

Most banks and building societies are already providing significantly fewer buy to let mortgages and the latest price hikes will not help.

Many landlords are thinking about selling up even though they do not want to. For the moment most buy to let investors will have to stick with their existing lender because their property's will not generate enough rent for them to remortgage elsewhere. Let alone capital raise to release equity.

We are helping more landlords setup Limited company mortgages as they look to maximise their profits and access some of the better mortgage rental stress tests.

Hopefully the rate hikes will start to slow down soon and the lenders will return to the market.
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Ashley Thomas
Director at Magni Finance
Several landlords have increased their rent and are seriously considering whether to do this again. Ultimately tenants will be worse off and will pay higher rent. If the landlords don't do this they would have to sell up, but most clients we have spoken to want to keep their property portfolio.

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Austyn Johnson
Founder at Mortgages For Actors
When rates start to hit over 6% for standard properties, landlords would riot. The stress rates would need to have such high rents, they would start losing tenants and the mortgage payments would outweigh their income. Careful planning will help, but it could create a ripple of unlet properties or high rental prices across the board. This would be the opposite of what the gov wants and they would try and combat this. (I am a positive person!)