Rent increase

macman

I don't recall mortgage rates at 0%. Lowest point was just sub-1%.

dimbo61

The BOE base rate was 0.1% for some time but I can assure very very few Landlords were paying that rate.
Try 3/4% above the BOE base rate 

Johnjdc

macman said:

I don't recall mortgage rates at 0%. Lowest point was just sub-1%.

I was talking about the base rate.

dimbo61 said:

The BOE base rate was 0.1% for some time but I can assure very very few Landlords were paying that rate.
Try 3/4% above the BOE base rate 

Perhaps. Two years ago MortgageWorks were doing

1.19% on a 60% LTV 2 year fix

1.59% on a 75% LTV 2 year fix

1.64% on a 60% LTV 5 year fix

diystarter7

Hi OP

Sadly, like some threads this one too has gone off topic

I hope you got the advice you was looking for and if not, read link if you wish - it may help

https://www.citizensadvice.org.uk/housing/renting-privately/during-your-tenancy/dealing-with-a-rent-increase/


Good luck.

theartfullodger

mattyprice4004 said:

Johnjdc said:

dimbo61 said:

I might add that the BOE has increased interest rates 8 times in the last 12 months and another rate increase due on Thursday.
For many Landlords this may mean a 100% increase in the Interest only mortgages they pay.
Rates have gone from 0.1% to 3%

Ah yes, all those times the landlord cut my rent as interest rates fell from 6% to 0%.

So, zero times, that was.

Yes, but in that time I'm sure inflation creeping up negated any possible 'discount' you felt you're entitled to. 
Now we have both factors the other way - rampant inflation combined with interest rates rocketing - so its only logical that rent will rise, and at a much higher rate than people are used to. 

For the sake of clarity, I am a landlord but own outright - and my tenants have signed a (very) long lease with no rent increases to protect both them and I. 

Very long lease?? Out of interest/nosiness, how long is very long?? IIRC over 3 years must be enacted as a deed, and over 7 years registered with Land registry ,, floor plans prepared, stamp duty etc etc see..
https://www.landlordzone.co.uk/information/long-term-ast/

macman

Johnjdc said:

macman said:

I don't recall mortgage rates at 0%. Lowest point was just sub-1%.

I was talking about the base rate.

dimbo61 said:

The BOE base rate was 0.1% for some time but I can assure very very few Landlords were paying that rate.
Try 3/4% above the BOE base rate 

Perhaps. Two years ago MortgageWorks were doing

1.19% on a 60% LTV 2 year fix

1.59% on a 75% LTV 2 year fix

1.64% on a 60% LTV 5 year fix

You referred to 'interest rates'. The only rate that concerns landlords is the BTL mortgage rate. Not the base rate. Most are on fixed rates, so a drop in base rate would not reduce their BTL rate.

Johnjdc

macman said:

Johnjdc said:

macman said:

I don't recall mortgage rates at 0%. Lowest point was just sub-1%.

I was talking about the base rate.

dimbo61 said:

The BOE base rate was 0.1% for some time but I can assure very very few Landlords were paying that rate.
Try 3/4% above the BOE base rate 

Perhaps. Two years ago MortgageWorks were doing

1.19% on a 60% LTV 2 year fix

1.59% on a 75% LTV 2 year fix

1.64% on a 60% LTV 5 year fix

You referred to 'interest rates'. The only rate that concerns landlords is the BTL mortgage rate. Not the base rate. Most are on fixed rates, so a drop in base rate would not reduce their BTL rate.

Check the post I was replying to which was the following claim:

"I might add that the BOE has increased interest rates 8 times in the last 12 months and another rate increase due on Thursday. For many Landlords this may mean a 100% increase in the Interest only mortgages they pay. Rates have gone from 0.1% to 3%"

It's pretty obvious in that context that I meant the base rate. In any event, I think it's very unlikely that many landlords were on fixed rates in 2009 which had not been renewed at a lower rate by 2021.

The Bank of England database only goes back 10 years but it's pretty clear what the trend was. Anyone renewing was cashing in nicely at any point in the last decade.

chrisw

My BTL interest only mortgage payments have more than doubled in the last 12 months.

My long term tenants are already paying below market rate but I feel it would be pretty unreasonable to increase the rent by that amount. For a new tenancy I'd put the rental up to market rate which would probably put me back financially in the position I was in a year ago.

theartfullodger

chrisw said:

My BTL interest only mortgage payments have more than doubled in the last 12 months.

....

In November 1979 under Thatcher's Iron handbag BoE Base rate hit 17% : See..
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp


 I had a for then large mortgage.  Was lucky as Building Society only wanted 15%. It was "painful".. 

You young kids, no idea....  

Buy good luck & best wishes...

lookstraightahead

theartfullodger said:

chrisw said:

My BTL interest only mortgage payments have more than doubled in the last 12 months.

....

In November 1979 under Thatcher's Iron handbag BoE Base rate hit 17% : See..
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp


 I had a for then large mortgage.  Was lucky as Building Society only wanted 15%. It was "painful".. 

You young kids, no idea....  

Buy good luck & best wishes...

Same here