Blog
Landlords! Peace of mind in uncertain times
Wednesday, December 7, 2022
With all the current “doom and gloom” in the media, there are mortgage options that are available if you are concerned about interest rates and the rise in the cost of living. Many landlords opted for fixed rate mortgages, which will be coming to an end soon and will want to shop around for the best deal available when this happens. Ideally you should start looking when there is a minimum of 4 – 6 months left on your mortgage, so that you can reserve any mortgage deals at the current rates rather than risk them going up.
Following Jeremy Hunt’s Autumn Statement, we have seen that many banks and building societies who offer “Buy to Let” mortgages have lowered their fixed rate mortgages and softened some of the “Loan to Value” criteria. There are several “Tracker” mortgages which are lower than current “Fixed rate” options and have no tie in, so you can switch at any time if a good alternative is available, or if the market changes. If you currently have your properties under a limited company, there are also some very attractive rates available.
The “cost of living crisis” is affecting us all and looks likely to be with us during 2023. We are, however, hopeful that inflation will decrease during Q2 and Q3 2023. With the increasing cost of mortgages, a reality in the medium term, the impact if your tenant is not able to pay the rent is a genuine concern. Now is a good time to consider investing in a “Rent Guarantee and Legal Protection” service if you do not already have one in place. Whilst there is a cost attached to this, it will ensure your rent gets paid as well as any legal costs, if there needs to be an eviction. So, if the worst happens, you are still able to meet your commitments.
To speak to a Financial Adviser and discuss all your available options or for professional advice or information on Rent Guarantee and Legal Protection and managing your property, please contact your local Frost Partnership office.
*Nothing above constitutes financial advice, always speak to a qualified broker.
