Today’s inflation figures do no look promising with headline inflation sticking at 8.7% in May, while underlying inflation has risen concerningly to a 31-year high😲
These figures point to a Bank of England interest rate rise tomorrow with markets expecting an increase of at least 0.25 percentage points from 4.5% to 4.75%. Although some analysts are now predicting the Bank will go for a larger 0.5 percentage point increase.
What does this mean for property investors?
In short lenders have been putting up rates and pulling products from the market for a number of weeks now.
New Data released by Moneyfacts Group plc shows the average 2-year buy-to-let residential mortgage rate is 6.44%. The average 5-year buy-to-let residential mortgage rate is 6.31%.
With interest rates continuing to increase, it is crucial property owners get in touch with our brokers, especially if your current mortgage product is due to come to an end within the next 3 to 6 months.
About The Author: Sunny Budhdeo
With a career that spans over 20 years, Sunny initiated his journey in the mortgage industry as an adviser at the prestigious estate agency Barnard Marcus. He quickly gained recognition for his expertise, particularly in specialist finance, focusing on complex buy-to-let loans and bridging finance. As the Co-Founder of Unique Property Finance, Sunny has become a linchpin in the industry, adept at solving intricate property finance issues and fostering strong relationships with lenders.
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