Low buy-to-let mortgage interest rates 'benefit tenants'

Date:Tuesday 18th May 2010
Author: Susanna Kavka

Tenants will benefit if their landlords are paying low interest rates on their buy-to-let mortgages, as well as being good news for the individuals letting out properties.

This is the view of Malcolm Harrison, a private rental sector expert, who noted it is easier for landlords to pay off a loan if they are charged less interest.

"If interest rates remain low and if more buy-to-let products come onto the market, it is going to be good for the private rental sector," stated Mr Harrison.

He suggested there is currently a shortage of good properties on the market and first-time buyers are struggling to get on the property ladder, which is helping landlords in terms of letting out homes.

Mr Harrison made his remarks following the publication of Council of Mortgage Lenders figures, which indicated that low interest rates are a factor in the slight improvement in buy-to-let arrears.

The organisation revealed the number of loans with arrears of more than 1.5 per cent has fallen to 19,300 in March, compared to 28,800 in the same month of 2009.