If You Linked Your Rate to Your Lenders Standard Variable Rate You May Get a Nasty Surprise
In my book “Successful Property Letting” I say..... “I also like tracker mortgages. With these, there is a guarantee that the mortgage rate will never be more than say 1% above the central bank (Bank of England) base rate.
If the rate is not linked to the central bank rate, the company will be free to set any rate and call that “the standard variable rate (SVR)” This might be uncompetitive, and if you’re tied in, you may be stuck on a very uncompetitive rate indeed.”
Well folks, as the credit crunch gets worse, the poor fools who did not heed that advice and took out mortgages linked to the lender’s SVR are now seeing their mortgages go up straight away. Abbey have raised their rates today.
The message is clear - always link to bank of England base rate not some wooly SVR.
If you want to know more about buy to let financing deal ask me.
I’m David Lawrenson from property investment seminar company Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book.
I’m a property investment expert , I contribute to newspapers and a host of property websites, write a property investment blog and run a buy to let consulting service
You can read more of my property blog and details of my networking, advice, property advice and mentoring programme and property consulting at my website www.lettingfocus.com.
My next London property networking meeting is in November. Click here for details: Property Seminar Event and I am also speaking at the property investors show in London on 22nd September. I will also be a panellist at a debate in the afternoon at the show. Details here: http://www.propertyinvestor.co.uk/london/seminar.asp
What’s unique about lettingfocus.com is that we are unbiased and independent, because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week
To read archived blogs select a date from the list at the right. To read recent ones, just page down.
If the rate is not linked to the central bank rate, the company will be free to set any rate and call that “the standard variable rate (SVR)” This might be uncompetitive, and if you’re tied in, you may be stuck on a very uncompetitive rate indeed.”
Well folks, as the credit crunch gets worse, the poor fools who did not heed that advice and took out mortgages linked to the lender’s SVR are now seeing their mortgages go up straight away. Abbey have raised their rates today.
The message is clear - always link to bank of England base rate not some wooly SVR.
If you want to know more about buy to let financing deal ask me.
I’m David Lawrenson from property investment seminar company Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book.
I’m a property investment expert , I contribute to newspapers and a host of property websites, write a property investment blog and run a buy to let consulting service
You can read more of my property blog and details of my networking, advice, property advice and mentoring programme and property consulting at my website www.lettingfocus.com.
My next London property networking meeting is in November. Click here for details: Property Seminar Event and I am also speaking at the property investors show in London on 22nd September. I will also be a panellist at a debate in the afternoon at the show. Details here: http://www.propertyinvestor.co.uk/london/seminar.asp
What’s unique about lettingfocus.com is that we are unbiased and independent, because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week
To read archived blogs select a date from the list at the right. To read recent ones, just page down.
This entry was posted by lettingfocus, on
Wednesday, September 12, 2007.
