Landlords Pay Off Millions in Mortgages as Interest Rates Rise
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Landlords are paying off millions in mortgage debt to reduce interest costs as rates rise. £363m paid off in last 9 months.
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Average 2-year fixed rate buy-to-let mortgage now 6.28%, more than double October 2021 rate of 2.92%.
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Annual cost on £150,000 interest-only loan jumped from £4,380 to £9,420.
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Buy-to-let debt dropped by £1.2bn Feb to Aug 2022, with 31% due to landlords paying down debt.
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Landlords reducing loan-to-value ratios on properties by paying down debt or selling higher LTV properties.