Bank Of England Interest Rate Hike Could Lead To Rent Rises

Last week’s interest rate growth to 0.75 per cent is likely to leave many landlords with no choice but to pass on costs through higher rents. Despite the recent stamp duty increase on second properties and the capping of mortgage interest tax relief at 20 per cent for all rental income, the majority of landlords have avoided shouldering tenants with the bill. However, landlords currently on tracker mortgages could see their bills rapidly increase. A tracker mortgage matches any rise in the base rate, and will find that an extra 0.25 per cent will add £12 per month to a £100,000 remortgage payment. It will also add £25 to a £200,000 loan. Read more on the RLA website.

https://residentiallandlord.com/bank-of-england-interest-rate-hike-could-lead-to-rent-rises/