Bank of Ireland Increases Buy-to-Let Mortgage Rates: What This Means for Landlords
As a landlord, staying on top of the latest mortgage rate changes is crucial to ensure you’re getting the best deal for your investment. Recently, Bank of Ireland announced that it will be increasing its standard and Bespoke buy-to-let (BTL) rates, effective from May 2nd. But what does this mean for landlords, and how can you navigate these changes?
Bank of Ireland’s rate hike may impact landlords’ cash flow
The rate hike will see the withdrawal of several existing BTL rates, including 2- and 5-year Green buy-to-let fixed rates, as well as a number of buy-to-let Interest Cover Ratio (ICR) and top slicing products at 60% and 70% loan-to-value (LTV). This move is likely to impact landlords who are looking to remortgage or take out a new mortgage.
“As a landlord, it’s essential to stay on top of mortgage rate changes to ensure you’re getting the best deal for your investment.” - [Your Name]
In its Bespoke buy-to-let range, Bank of Ireland will also withdraw a number of 2-year and 5-year deals across both 60% and 75% LTV brackets. This could lead to a reduction in options for landlords looking for flexible mortgage products.
Landlords may need to reassess their mortgage options in light of the rate hike
So, what can landlords do to mitigate the impact of these rate changes? Firstly, it’s essential to review your current mortgage deal and assess whether it’s still the best option for you. You may need to consider remortgaging to a different lender or product to ensure you’re getting the best rate.
Additionally, it’s crucial to factor in the potential impact of these rate changes on your cash flow. With higher mortgage rates, your monthly repayments may increase, which could affect your rental yield.
Mortgage rate changes can have a significant impact on landlords’ cash flow
In conclusion, Bank of Ireland’s rate hike is a reminder that the mortgage market is constantly evolving, and landlords need to stay vigilant to ensure they’re getting the best deal for their investment. By reviewing your mortgage options and factoring in the potential impact of rate changes, you can navigate these changes and ensure your investment remains profitable.
