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Landlords well placed to handle increased cost of borrowing

Landlords will continue to be able to handle their mortgages and have enough headroom to offset further interest rates, new research reveals.

The research by Paragon Mortgages indicates that landlords gearing of their investments means they are well placed to deal with the rising cost of borrowing.

It shows that on average landlords borrowing are equivalent to less than 40% of their portfolio value.

John Heron, managing director of Paragon Mortgages, says: It is important for the stability of the buy-to-let industry that landlords take account of the possibility of rising interest rates when raising finance and it is reassuring to see that they are doing so.

Despite some scaremongers predicting the decline of buy-to-let post rate rise, the vast majority of landlords have left themselves ample room to accommodate any expected rise in borrowing costs.

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