VERY interesting conversation with a landlord of ours today. He has a small portfolio of four properties the first purchased about 10 years ago. Some of them have been remortgaged to finance deposits for further purchases but he has not looked at the mortgages on each of them for a few years.
Why would you when rates have been so low?
He has just this week sat down with his broker to remortgage the portfolio because he like most of us he wants to ensure his portfolio is as income effective as it can be in the future. We are likely to see further interest rate rises and he wanted to protect himself from those increases. Income is going to be eroded by tax changes and other costs he can do little about so he wanted to make sure he was being as sensible as possible regarding the mortgage packages.
He was stunned to find that he can fix the rate for 5 years on each of his properties at a LOWER rate than he is currently paying!! Yes that’s right...he can actually reduce his monthly costs AND protect himself from any rate rises for FIVE years.
With the almost complete lack of new entrants to the Buy to Let market lenders are desperate to lend to existing landlords by way of remortgage. The rates they are offering are super competitive. Many have few if any costs with many offering free survey and conveyancing, some even offer a cashback in addition!
If you have not looked at fixing your mortgages you really should be talking to your broker or at the very least be browsing the internet to look at rates NOW. You may find that you, like this landlord can get a stunning result for little cost.
If you want to talk through your investment plans and strategies as always I would be delighted to help you.