How do you think the interest rate increase will affect the market ?

mikeyw

Guys,

As a potential buy to let investor I was wondering how you feel today’s interest rate rise will affect the housing market ? Although this increase alone probably won’t make a huge difference, is it likely to be the catalyst for a pause and potentially a small correction ?

I’m still on the sidelines at the moment but wandering now if I should sit tight for 3 months and see how things look towards the end of the year ? I’m looking at the very popular 2 bed town house category and I guess if things turn nasty this is where overstretched BTL’s will have to start selling 1st.

Conversely I could sit and wait and watch another 5% value increase pass me by.

Any views from the experts out there ?

Mike.

ollyshaw

Will you be taking out a mortgage for this?

biting_the_bullet

Go on mate, spend your money towards the top end of the market. You know it makes sense. Property always, always goes up.

mikeyw

biting_the_bullet wrote:

Go on mate, spend your money towards the top end of the market. You know it makes sense. Property always, always goes up.

Are you been sarcastic or suggesting I should aim higher with my BTL investment like at 3 bed semi ?

I will be using equity in my current house to get a mortgage. Looking around the £150-180K bracket which is low end in the expensive Harrogate market.

Iso

If a BTL has to sell if interest rates go up any more because their margins are squeezed why will you, who intends to BTL the very same property be in a different position from the original BTL?

biting_the_bullet

Sorry, was trying to be extremely sarcastic:rotfl: :rotfl:

Over here local to me, N.E. Lincs, we have investors trying to off load their portfolios by the shed load. Folk in the know trying to get out before something smelly hits the fan???? Interest rates on an upward curve with possibly more rises to come. Prices still at crazy levels?? Work it out matey. Is it a wise time to be looking to get into buy to let??? And using paper equity from your own home:eek: :eek: :eek: Is that equity real money then??

manhattan

i wouldnt risk it, imo.

keep an eye on the market very closely,in the coming months.

manhattan

if i was a house owner today with btl's,my portfolio would be on the market asap!

mikeyw

I guess any sign of the market dropping and the BTL's will be 1st to jump ship as they obviuosly don't need that particular roof over their head and want their profits before they start dissappearing.

Looks like those in the know are saying sit tight for now and see what happens.

adr0ck

high street banks, loan companies etc are much more interested in family homes now (for new build)...no one wants to touch flats as the market is a bit saturated....saying that...if its the right development in the right location they are obviuosly still interested

not sure if that helps you

FaTB

The market has been pretty stagnant for a couple of years now, and this aint gonna help.

This could be a tipping point, personally i'm gonna sit and watch, oh and save, save, save !!