Buy-to-let rate rises expected in 2019

Specialist broker Commercial Trust believes that historically low rates for both tracker and fixed-rate buy-to-let mortgage products are set to rise in 2019.

Related topics:  Mortgages
Rozi Jones
12th November 2018
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"My view is that the overall picture for the next decade is a gradual upward trend in rates."

Its chief executive, Andrew Turner, believes that although rates have remained low throughout two base rate rises, "this will have to change".

Turner said: "The bumpy road of Brexit may see the base rate brought down slightly, once things settle, but I think it is unlikely and in any event, there is not too much scope for reduction. My view is that the overall picture for the next decade is a gradual upward trend in rates."

He added that the surge in buy-to-let remortgaging has tempered purchases, keeping rates low, but this is expected to ease going into 2019.

Turner concluded: "With over 2,000 products in the buy-to-let marketplace it is clear that there is a myriad of choice for investors. This volume of choice brings with it complexity, where the lowest rate does not necessarily equate to the cheapest overall deal."

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