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.