Landlords face crunch mortgage decisions within 12 months
40% of mortgaged landlords must renew their loan in the next year, and a third may raise the rent. Will this impact you?
A recent article in the ‘Negotiator’ confirmed that nearly half of all landlords with a mortgage face a decision over whether to renew their loans in the next 12 months, with 41% due to renew in the following two or three years.
Those landlords needing to renew their mortgage rate believe their monthly payments will increase by £615 on average.
To deal with higher monthly costs, 30% of landlords have said they plan to increase the rent of their property.
LANDLORDS
If you have a mortgage act now;
Step 1) Check when your mortgage comes to an end
Step 2) Talk to an independent financial advisor who can look at the best renewal deal for you.
Step 3) Talk to your agent or review your AST – when can you increase rent and how if need be.
TENANTS
Be prepared!
Step 1) Review your contract to see how & when your renewal is due. Its worth noting here that your landlord cannot increase the rent whilst you are within a fixed term contract (unless the contract specifically allows for this)
Step 2) Look at your monthly budget and spending and think about what you could reasonably afford in terms of an increase – this may well be nothing, however you are better to do the exercise early in your own time before your Landlord or agent contacts you.
Step 3) Look at what is currently available to rent – could you afford to move if you had too? What is the alternative?
Step 4) We are here to help. If you have any concerns contact the office for help and advice.
If you have any tenancy related queries please do not hesitate to contact the office. We are here and ready to help!
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