Landlords encouraged to remortgage now before base rate hike
Much is predicted for 2014 in regards to the property market including the potential increase of the Bank of England base rate.
Having remained at the historically low rate of 0.5% since March 2009 there is now a real belief that the Bank of England could lift its base rate sometime in 2014, a year earlier than originally anticipated.
So what does this means for landlords? Rob Denman, Head of GW LET, explains:
“While the base rate doesn’t directly impact on standard variable rates – lenders can change its SVR at any point – it been a general rule of thumb that as the base rate remained static many SVRS are at relatively low levels. However should the base rate rise this is likely to change.
“As a result landlords will see their monthly repayment increases. With finances already tight this could cause real problems particularly for landlords with a number of properties.
“Landlords may therefore wish to start considering their remortgage options to avoid a potential increase in expenditure.”
As a property legal specialist, Goldsmith Williams can help landlords looking to remortgage their existing property as well as purchase additional buy to lets. Check out for our guide to buy to let remortgaging as well as obtaining a free online quote for our remortgage services.
Our landlord clients also have the added benefit of our GW LET service which offers legal help and advice to landlords on a range of issues such as rent arrears, tenancy deposit disputes and rent increases.
Content correct at time of publication