Landlords to take rate hikes in their stride

Landlords to take rate hikes in their stride

Thursday, January 25, 2007

Rising mortgage rates after the Bank of England’s third interest rate hike in recent months is causing concern with many borrowers, but buy-to-let landlords have nothing to be concerned about, according to one mortgage lender.

Paragon Mortgages states that with an average loan-to-value ratio of less than 40%, buy-to-let investors have sufficient room to manoeuvre around interest rate hikes without undue pressure.

"Over the last four years landlords' loan to portfolio value ratios have been generally declining, showing that on the whole, buy-to-let now has a lower risk profile than it did in 2003," said managing director John Heron.

"Despite some scaremongers predicting the decline of buy-to-let post rate rise, the vast majority of landlords have left themselves ample room to accommodate any expected rise in borrowing costs," said Mr Heron.

Landlords should also be in a good position to add to their portfolios as they have taken a responsible approach to their investments, allowing them to be able to take interest rates "in their stride", Mr Heron concluded.

CLICK HERE TO PRINT THIS PAGE

CLICK HERE FOR OUR FULL NEWS ARCHIVE

Get this news on your website !

If you have a website, whether it is a personal homepage or a fully fledged estate agent service, you can get our news headlines included on your site. Both these newsfeed services give you the option of having the full news content from TheMoveChannel.com - not just the articles that appear on country subdomains such as this one:

Premium service

For just £50 / month, you can now have your own customised news service on your website. With the XML-based service, articles actually appear on a page on your site, making this a sticky feature that won't result in your traffic leaving. You have control over the display format to show your choice of headlines, dates and short article introductions and can apply your own style sheet or control the display format with XSL sheets. Finally, you can also set your subject preferences so that your feed only displays articles which are relevant to your site audience.

Top News Stories:

Brits abroad have 'no regrets’
6/19/2008 - Expats who’ve escaped to sunnier climes seemingly have no regrets about leaving the UK…

Canny FTBs remain ‘undeterred’
6/19/2008 - A new survey has revealed that FTBs are increasingly entering the new homes market with confidence...

Londoners love ‘laid-back’ Italy
6/18/2008 - A survey has revealed that Londoners see Italy as the most desirable place to buy property...

Sponsored listings:


Worldwide	England	Northern Ireland	Scotland	Wales	London	Spain	France	Italy	USA	Investment


Privacy policy Terms of use Support Bookmark now! uk index						TheMoveChannel.com is a protected Trademark. Copyright © 2000 - 2008 On The Move Ltd. All rights reserved.