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Base rates rising leaving Buy-to-let investors in the struggle

25/01/2007

Today investors who deal with buy-to-let mortgages will find it more expensive when arranging a mortgage deal due cause to base rates increasing February time.

Chartered Surveyors have made progress on their research looking into how many mortgage deals are actually ‘buy-to-let mortgages’. Figures showed their were 11.7 million mortgages in the United Kingdom, however 6.6 per cent were actually buy-to-let mortgages.

There were 0.6 per cent of mortgages, which were in arrears, comparison to 0.96 per cent along the main mortgage market.

Analysts have found out that the average rent has increased at the fastest pace years from 2002-2007.

Economist of the Royal Institution of Charted Surveyors, David Stubbs also stated another point.

"Buy-to-let investors will be less at risk from repossessions," Said Mr. Stubbs

"Older, wiser investors are likely to ride out periods of interest rate rises looking to the benefits of long-term capital growth rather than short-term rental income."

Investors who are looking to increase their home portfolio could easily purchase a house or set-up a buy-to-let mortgage. Landlords feel that buy-to-let is always the way forward and base rates changing will never affect the long-term returns.


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