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  • Property-a-holics

    Interest rate rise - landlord perspective

    These BoE fools have no idea how much of the PRS and the recent residential  market is sustained by low IR

    Without them I will be forced to sell up as rents won't match the cost of the mortgage; service charges and ground rents etc

    This was the case even before S24

    I would have to increase rents by hundreds a month which would be unviable.

    The BoE hadn't got a clue what is going on in the real economy

    If I sell that is 10 homeless tenants!

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    Everyone knows (or should know that we are in a temporary low rate environment. "Temporary" so far has been a decade! As a landlord you should have been aware years ago that rate rises are coming - albeit no one knew when. So surely you should have started to adapt and delever? What do you want the government to do - delay an interest rate rise so that landlords continue to drive up property prices because borrowing is cheap.

    I think there will be another 25bps rise next year and that will be it until probably 2020. But either way you should either have a long term fix in place (which gives you say 4-5 years to figure things out/delever) or a position where you are or on a path to lower leverage. If not, that's just bad business since this is not like S24 which cam out of the blue (albeit even that had a phase in to give you time to adapt).

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    If the BoE rate was a normal one vast swathes of the PRS would be unviable.

    With greedy lenders still retaining the same differentials as in 2008 it would mean BTL rates of 9%

    Anything more than 6% will bankrupt me.

    So I would be forced to sell up.


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    It just shows what they know ????

    we will have low interest rates for years  to come and that's the important point as far as I am concerned

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.