Buy-to-let tracker mortgage holders 'should avoid complacency'

Date:Friday 7th August 2009
Author: Susanna Kavka

Buy-to-let investors with tracker mortgages should avoid being complacent, an expert has advised.

Commenting on the issue, Keshav Thukaram, managing director of residential landlord services website, said that the low interest rates that exist currently in the UK may soon rise.

He made his remarks following the decision yesterday by the Bank of England's (BoE's) Monetary Policy Committee to hold the base rate at 0.5 per cent.

Mr Thukaram said: "Landlords, especially those on tracker mortgages, are having a cash ball. However, they should not be complacent as the party may be short-lived."

He added that as soon as the economy shows signs of recovering, the BoE is likely to raise the base rate.

This, he suggested, will "inevitably affect" buy-to-let mortgages.

Recently, the BoE released figures which showed that a total of 47,584 mortgage approvals for home purchase occurred in June. This was the highest level for more than a year.