According to Landlord Mortgages, the UKÂ’s largest specialist buy-to-let mortgage broker, many buy-to-let investors are coming to the end of their three-year fixed rate mortgages and will be remortgage on to new deals.
Find a new mortgage deal
Lee Grandin, Managing Director of Landlord Mortgages, said: “In addition, the rental market is buoyant and in some areas there is real competition amongst consumers for good rental accommodation.
“This trend within the market is likely to mean that landlords are not forced to ‘swallow’ the increased cost of financing but can push it onto their tenants.”
Find out how much you can borrow
While rent increases are not good news for tenants, consumers should not panic as it will take a while for landlords to pass on these rises. The most likely triggers for this will be when the property is rented out to new tenants or when the contract is renewed.
Tenants who have been in a property for several years, paid their rent on time and have caused very little damage any even find that their landlords do not increase their rent substantially. Most buy-to-let investors recognise the importance of keeping a good tenant.
Calculate your mortgage repayments here
Grandin said: “In some areas which boast particularly bullish rental markets, landlords may even choose to increase rents above the level needed to pay the mortgage. This move will allow them to build a fund to pay for future repairs, make a small profit or pay for any under performing properties in their portfolios.”
