Investors should review mortgage options

by Christopher Evans

Buy to let investors have been advised to pay more attention to their mortgage rates as a result of the current lows being seen in the market.

Neil Young, chief executive of the Young Group, noted that many investors are no longer reviewing their options as regularly as before, with an assumption that going on to a standard variable rate is the best course of action a potential cause.

But he explained that this may not be the case and anyone investing in residential property should keep on top of changes in the various offerings.

"Arguably, now is the time to be paying more attention to the mortgage market to avoid the risk of losing out when [the] base rate inevitably rises in the future," Mr Young remarked.

The comments came after research by his organisation showed that less than a quarter of buy-to-let investors are reviewing their mortgages at least twice a year, with that percentage having stood at over 80 per cent a year ago.

Earlier this week, the Bank of England's Monetary Policy Committee voted to maintain the official base rate at an all-time low of 0.5 per cent.

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Published on: July 10, 2009

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