2017 shows why landlords need to lock in at current borrowing rates to maximise future returns
- 21st December 2017
- Landlord Property News
Rising interest rates highlight importance of planning ahead
Please see below for ludlowthompson's opening hours over the seasonal holidays: Over the seaonsal holidays, ludlowthompson stays open and accessible for our clients, recognising that this down time is often used to make future property decisions. We are only closed for the three bank holiday days over the Christmas season.
Last month we saw the Bank of England increase the base rate to 0.5%, the first time it has risen in a decade, albeit from a historically very low level.
What the recent rate rise does emphasise is the importance of planning ahead and getting a fixed-rate mortgage. This is especially true given that high inflation – currently 3% – means a further increase is likely to happen sooner rather than later.
Landlords who are thinking of expanding their portfolio should look to take out a mortgage on a fixed rate now to protect themselves against further rises. Many will be looking to lock in the current rate by getting a fixed rate mortgage for 2, 5 or even more years.
Another reason for taking out a fixed-rate mortgage in the current climate is the popularity of long-term tenancies which give landlords added long-term financial stability. These tenancies are a win-win for landlords and tenants and the Government is increasingly promoting their use.
Indeed, ludlowthompson has been a pioneer in this area, with our average tenancy sitting at 26 months - a strategy that derives higher returns for its landlord and investor clients. This is underpinned by ludlowthompson's focus on customer service, which has led to it being consistently ranked as the number one agency in the UK on AllAgents.
Stephen Ludlow, Chairman at ludlowthompson, says: “The next rate rise could not be too far away so landlords need to lock in rates now.”
“There are still plenty of attractive fixed rate deals to choose from so I suggest looking now in case they start disappearing from the market!”
For those individuals interested in talking about getting a new mortgage please contact Chris Lockley at Jigsaw Mortgages here.
ludlowthompson's hours over the Winter break:
Open Sat 23rd (9am - 2pm)
Closed Sun 24th - Tue 26th
Open Wed 27th - Fri 29th
Open Sat 30th (9am - 2pm)
Closed Sun 31st - Mon 1st
Closed Sat 23rd - Tue 26th
Open Wed 27th - Fri 29th
Closed Sat 30th - Mon 1st
Emergency phone lines are open as usual during office closures.
The next rate rise could not be too far away so landlords need to lock in rates now
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