A couple weeks ago, I talked about the wisdom of shopping around when you find yourself on a Standard Variable Rate (SVR) when your fixed-term mortgage ends.
Well, this holds even more true for landlords, because costs of borrowing are likely to rise this year. A recent article on Mortgage Introducer comes right out and says that landlords should fix now. The article is based on research by Mortgages for Business, and their MD – David Whittaker – sums it up:
“So whilst lenders’ margins are likely to fall during 2014, it is highly likely that interest rates will rise on medium term fixed rate mortgages reflecting the impending rise in Bank Rate.
That is why we maintain our advice to investors to consider taking out five year fixed rate mortgages.”
So, if you’re coming up to the end of your fixed-rate, it’s a good idea to shop around now. Competition is still strong, so lenders offer a variety of mortgage products.
If you’re looking for a new buy-to-let mortgage, it’s a good idea to especially consider 5-year, fixed-rate products, also from a variety of lenders.
That’s what we do, and we can help find the right mortgage for you. Just give us a ring.