Beware Interest Rate Rises - Buy to Let Liverpool
Tuesday 20th December 2022
Buy to Let Liverpool
The Bank of England has raised interest rates to 3.5%, in response to the high rate of inflation in the UK currently at 10.7% (CPI). Its target is just 2%, which seems a long way off.
Many buy-to-let Liverpool investors are on fixed-rate mortgages, so are hoping rates stabilise, or even fall before the end of their term, but others will be on the standard variable rate.
It's important to 'stress test' your monthly cash flow and work out where your break-even point is, and how you will finance any shortfall. You must also have a contingency fund for any unforeseen costs, such as a boiler breakdown or other emergency repairs.
Additionally, rents have risen strongly recently and your letting agents in Liverpool should as a matter of course, be undertaking rent reviews and in some cases will find that properties are significantly under-rented.
We have just sourced a buy-to-let property at auction for one of our retained clients, and the rent was 50% below the market rent. Yes, that's not a typo.
So, stress test your Liverpool property investment and undertake a rent review.
Property Investment Liverpool
Letting Agents Liverpool
Letting Agent Fees Liverpool=https://www.nwcaterham.com/contact-us]