An analysis by a national newspaper shows that investors purchasing buy to let properties with mortgages are likely to lose money within five years, irrespective where in Britain they invest.
The Daily Telegraph calculates that using current house price and typical rents from LSL, and mortgage data from brokers, landlords on a typical 75 per cent mortgage will be losing money each month by 2021 in ten out of 11 British regions, including London.
The newspaper hypothesises that by 2021, mortgage interest relief for landlords paying the higher rates of income tax will be very sharply reduced, while current fixed rate mortgages may be replaced with a variable rate mortgage. The presumption is that remortgaging to a more favourable rate may become more difficult as lenders become stricter.
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