Lynsey Sweales, marketing and PR director at The Money Centre, says that hopefully brokers will have prepared for the interest rate rise.
She says: Investors with a good broker should hopefully be supported by their brokers forward planning for such a situation arising.
At The Money Centre we always have plans in place to make any rise in the interest rates as painless as possible for our clients and most brokers worth their fee should have a contingency plan in place to support their clients.
The Money Centre offers investors a grace period with the majority of our lenders. This means that the interest cover will be calculated as if the rate rise had not happened, allowing investors to raise more money now than when the rise is finally checked.
In addition to this, our fixed rates remain the same so you can secure your mortgage outgoings against further rises.
The increase in interest rates has not affected the market as many thought it would with house prices falling. In fact the opposite has happened with the Royal Institution of Chartered Surveyors raising its house price forecast for 2006.
House prices are expected to increase by 4%, which is a considerable step up from the prediction of zero to 3% originally forecasted in 2005.
This is good news for buy-to-let investors in the long term. House price inflation and higher interest rates are resulting in many people, such as first time buyers and returners to the market, finding it increasingly difficult to commit to the financial responsibilities of owning a property.
The rental sector offers a solution to this problem so now is the time for investors to take advantage of a rental market being fuelled by a growing consumer demand, with confidence in the support of their brokers and lenders who are always one step ahead of the game.