Interest rises are starting to bite. Many homeowners facing the end of their fixed rate periods are facing steep increases in their monthly mortgage payments to cover the rate change, and many lenders are tightening their lending criteria. This presents a double-whammy to owners looking re-mortgage: tighter lending rules and higher rates will demand a lower LTV on the loan.
This leads to a rock and a hard place - either don't remortgage, and swallow a substantial additional monthly cost, or re-mortgage with considerable fees, lower loan to value, and deplete that rainy day fund...if you can.
Alternatively... sell.
Agents we speak to are already noticing significant increases in inquiries from sellers. BTL landlords in particular looking to exit their investments which are no longer performing.
Overall the market is reported to be dropping, but from an investor point of view markets are of course more nuanced. Area and property type are factors that will always come into play when looking at market behaviour, and where there is volatility there is opportunity. And where interest rates are high, cash is king.
If you're interested in exploring opportunities, and are looking for a service that is tailored to your investment needs, then get in touch with Pinelee Estate Investments and we will be happy to help.
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