January 14, 2009
Buy To Let Implications of Recent Interest Rate Cuts
Buy To Let Investor? What does the recent interest rate cuts mean for UK property investors?
With interest rates at historical lows what are the real implications for investors in the buy to let market.
The government is aggressively cutting rates in the hope of the cuts being passed onto borrowers – is this actually happening in reality? Many doubt this will actually happen an in many cases most people predict that only a small part, in the region of 0.1 to 0.2%, actually being passed on.
Lenders such as Halifax and Abbey have stated that they will pass on the full 0.5% for its tracker mortgages, although this will not be the case on SVR “Standard Variable Rate” and tracker rates for new mortgages.
Investors who can take advantage will obviously benefit, but it is the bigger picture of the lack of liquidity and the higher loan-to-value requirements that are causing the
On a positive note, the lack of liquidity is boosting the rental market for those unable to get on the property ladder. Demand for rental property is currently out-stripping demand.
