Higher mortgage repayments will increase rental demand
Published: 02-Apr-2008
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Buy-to-let landlords stand to benefit from an increase in mortgage repayments, as many homeowners plan to sell up and rent.
That is according to a new study by independent personal finance website Fool.co.uk, which discovered that 70 per cent of property owners are set to experience large increases in their monthly mortgage repayments following the expiration of their fixed-rate deals.
Recent data from the Financial Services Authority (FSA) indicated that approximately 1.4 million fixed-rate deals will come to an end over the next few months.
Fool.co.uk revealed that five per cent of borrowers intend to sell their property and rent as a result of higher repayments.
David Kuo, head of personal finance at Fool.co.uk, commented: "Many homeowners will feel the full force of the credit crunch when their special-rate mortgage deals come to an end.
"A significant number [of consumers] will find that the myriad of choices that were once available has shrunk to no choice, as lenders limit their best deals to their preferred clients."
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