Landlords that are facing high rates thanks to their flexible mortgages are being encouraged to explore all of their options before getting a refinance. Although rates are very high on flexible mortgages at this time, it is only a matter of time before they drop back down and these consumers may be better served by riding out the high fees. However, for those that are unable to make their flexible mortgage payments, there may be little choice at this time. One thing is certain, until fees drop, many will continue to suffer.
Louis Cuming of MoneySupermarket stated, “Landlords wishing to remortgage buy-to-let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates. This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling though, there may well be many landlords having to sell their investment at a loss.”
Melanie Bien, of Savills Private Finance, a mortgage broker, said: “The cost of remortgaging means many are staying put on their lender’s standard variable rate rather than pay a fee of 2 per cent or 2.5 per cent to go onto an unspectacular rate.”
Related reading: Flexible Mortgages
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