6 Aug

Buy-to-let 'not dependent on base rate'

Buy-to-let 'not dependent on base rate'

The cost of buy-to-let mortgages will not depend on whether or not the Bank of England's monetary policy committee cuts the base rate tomorrow, it has been stated.

Chief executive of Property Portfolio Managers Young Group Neil Young forecast that the base rate would remain the same as the Bank does not want to see inflation soaring even higher than it already has done.

At the same time, he commented, the cost of borrowing for buy-to-let investors is not dependent on the base rate.

Observing that "mortgage rates, particularly for buy to let mortgages have not been closely correlated to the Bank of England base rate for some time", he said tracker rates had come down three times in the past month, with some cuts of as much as six per cent.

The expectation that the base rate will remain at five per cent tomorrow is particularly strong, with the polls of economists and financial institutions by Reuters, Bloomberg and Adfero all producing a unanimous verdict that this will be the case.

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