Buy to Let Mortgages Avoid Rising Interest Rates

16 March 2012 Categories: News

Buy to Let Mortgages Avoid Rising Interest Rates

Two of the biggest mortgage lenders in the UK have announced significant hikes in the interest rates on their homeowner mortgages this week, but thankfully they haven’t mentioned imposing the same increases on their buy to let customers. Both the Halifax and the Nationwide – who recently acquired the Bank of Ireland mortgage customers – have announced planned increases for their homeowner mortgage rates.

Nationwide is planning to increase their current interest rate from 2.99% to 3.99% in June, and then again to 4.49% in September; a move that will affect over 100,000 homeowners.

Similarly the Halifax is set to increase their homeowner interest rates by 0.49% to 3.99% from the 1st May, but in this case over 850,000 borrowers will feel the effects.

It is thought that the increases are an attempt to bring low interest rates in line with market averages and as a result experts feel that the planned interest rate hikes by these two big names won’t start a viral trend. As things stand there have been no announcements regarding buy to let mortgage rates but this doesn’t mean increases won’t be imposed later in the year.