The last few weeks have brought encouraging news for borrowers and those looking to invest in property, with many lenders announcing new cuts to their mortgage rates.
The move reflects lenders’ response to wider economic shifts, even as the Bank of England held interest rates at 4.25% last month.
Caroline Marshall-Roberts, CEO and founder of BuyAssociation, has shared her thoughts on what the change means for investors, along with her advice for navigating the current market:
“The decision for lenders to lower mortgage rates is a clear sign that they are starting to anticipate upcoming change.
Although the Bank of England held rates steady last month, its slow and well-thought-out approach has meant that lenders are responding to an overall trend and establishing a degree of predictability in the market.
This means that investors can plan with more confidence now, knowing that they can make decisions without the immediate threat of rising costs and repayments.”
Caroline breaks down her top tips on how property investors can manage and navigate the current housing market:
Reassess your financial position
With rates holding and more cuts potentially on the horizon, now is a good time to review your finances. If you’re on a variable-rate mortgage, consider switching to a fixed-rate deal. Locking in a lower rate can protect you from future increases and improve your cash flow forecasting.
Track inflation and economic forecasts
The base rate hold is promising, but it doesn’t guarantee future cuts. Keep a close eye on inflation and monetary policy signals; they’ll guide when easing may start and help you plan your next move.
Optimise what you already own
Rather than expanding your portfolio, focus on maximising returns from your current properties. This could mean refurbishments, improving energy efficiency, or enhancing tenant appeal, all of which contribute to more predictable income.
Explore lower-value investment opportunities
Consider properties in lower-cost areas or with smaller upfront investment needs. This approach can reduce borrowing and help protect your cash flow if rates increase again.
Keep rents competitive
Affordability is crucial for tenant retention. Pricing rent at a realistic, market-aligned level can help avoid costly voids and ensure consistent income, especially during economic uncertainty.
