6
Aug
Buy-to-let 'not dependent on base rate'
The cost of buy-to-let mortgages will not depend on whether or not
the Bank of England's monetary policy committee cuts the base rate
tomorrow, it has been stated.
Chief executive of Property Portfolio Managers Young Group Neil
Young forecast that the base rate would remain the same as the Bank
does not want to see inflation soaring even higher than it already
has done.
At the same time, he commented, the cost of borrowing for
buy-to-let investors is not dependent on the base rate.
Observing that "mortgage rates, particularly for buy to let
mortgages have not been closely correlated to the Bank of England
base rate for some time", he said tracker rates had come down three
times in the past month, with some cuts of as much as six per
cent.
The expectation that the base rate will remain at five per cent
tomorrow is particularly strong, with the polls of economists and
financial institutions by Reuters, Bloomberg and Adfero all
producing a unanimous verdict that this will be the case.
