About a third of property investors are struggling to remortgage after failing their lender’s affordability test, resulting in some landlords being forced to sell as high mortgage rates create affordability problems in the buy-to-let sector.
Landlords coming off two or five-year fixed rates are facing rates more than 2% higher than they were a year ago, making their loans unaffordable, according to their lender’s stress test. Unable to secure a new deal and with nowhere else to go, their loans are reverting to the lender’s standard variable rate, which averages about 7.5% and could be as high as 9.5%.
Average buy-to-let mortgage rates have fallen in price recently but not as significantly as residential products.
Your home may be repossessed if you do not keep up repayments on your mortgage. Not all Buy to Let Mortgages are regulated by the FCA.
Contact us today at 01733 367800 to discuss how we can assist you with your mortgage needs!
