Rising mortgage costs are hitting the rental market, it\u2019s being claimed.<\/p>\n
According to the Moneyfacts website, the Middle East conflict has led to 1,300 buy-to-let mortgage details being pulled from the market since the end of March.\u00a0<\/p>\n
It also reports that the average rate charged on a two-year fixed buy-to-let mortgage increased from 4.66% at the start of March, to 5.40% today.\u00a0<\/p>\n
The average five-year fixed buy-to-let mortgage rate went from 5.05% to 5.72% over the same timeframe.<\/p>\n
Now the TDS Charitable Foundation has entered the debate, with a survey of over 2,000 private landlords in England.<\/p>\n
It shows that 49% of landlords last year said they funded their rental property without any borrowing at all, up from 31% in 2024. This suggests higher mortgage rates do not affect around half of all landlords.<\/p>\n
That said, 28% of landlords said they funded their rental property with interest only buy-to-let mortgages.\u00a0<\/p>\n
This group is particularly susceptible to increased interest rates on mortgages, given they do not pay down the overall balance of their mortgage in their monthly payment.\u00a0<\/p>\n
As such, any rise in interest rates directly increases the cost of the entire loan amount, thereby denting landlord cash flow and profitability.<\/p>\n
Last year, mortgage costs were not cited as the primary in determining rent increases.\u00a0<\/p>\n
Among the 56% of landlords who said they have increased rents over the previous 12 months, just a quarter (26%) cited growing mortgage costs.\u00a0<\/p>\n
More frequently cited reasons for increasing rents included increased property maintenance and running costs (49%), wanting to align rents with the local market (44%), and increases in the cost of living more generally (41%).\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Rising mortgage costs are hitting the rental market, it\u2019s being claimed. According to the Moneyfacts website, the Middle…\n","protected":false},"author":2,"featured_media":890048,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[748,393,4884,6792,1144,285,712,16,15,1764],"class_list":{"0":"post-890047","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-britain","10":"tag-england","11":"tag-great-britain","12":"tag-mortgages","13":"tag-northern-ireland","14":"tag-politics","15":"tag-scotland","16":"tag-uk","17":"tag-united-kingdom","18":"tag-wales"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116394476673555953","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/890047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=890047"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/890047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/890048"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=890047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=890047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=890047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}