Although the rise in Bank of England interest rates has raised the cost of buy-to-let mortgages this month, many mortgages are still cheaper than they were in August 2017, LettingAgentToday.co.uk has reported.
An example of this is a 60% to 70% loan-to-value (LTV) commercial mortgage which is 2% cheaper than it was three months ago.
A two-year fixed interest 60% LTV mortgage is 2.08%, which is 1% lower than in August. Three- and five-year fixed rate mortgages are at the same rates as August 2017.
The Bank of England interest rate rise has meant that fees for commercial mortgages will go up for the first time in 10 years. Some financial experts predict that the Bank of England will make a number of small interest rate increases over the next few years, so October 2017 could be the last time that interest rates are lower than earlier in the year.
Landlords have faced increased costs due to stamp duty rises and cuts to interest payment tax relief, but mortgage payments have not risen. Some landlords are selling their properties because of decreasing profits, but there are still many who are buying new properties. These figures suggest that they may still be able to find competitive interest rates at least until the end of 2017.
The buy-to-let market has gone through many changes over the last year or two, but landlords with sound business plans, and who are purchasing properties in the right locations, can maintain a profitable business.