Renters and buy-to-let investors could be strongly hit by rising mortgage rates, with potentially serious impacts on the availability of homes to let, a committee of MPs has heard. The Treasury Committee heard evidence about the potential impacts of rising mortgage costs for mortgage holders and renters.
Mortgage rates increased sharply amid market turmoil following the mini-budget and many products were pulled from sale. Rates offered on home loans have been on the rise generally in recent months, following a string of Bank of England base rate hikes.
Chris Rhodes, chief finance officer at Nationwide Building Society said the buy-to-let sector had been particularly hit, meaning that: “It’s marginally profitable for new buy-to-let investors if not loss making to take on board a new property, so I think there are potentially implications there in the medium term for the sustainability of the buy-to-let market."
