Those with buy-let mortgages are able to handle their monthly payments even after the recent interest rate rises, it has been claimed.
According to Paragon Mortgages, buy-let schemes now have a lower risk than in previous years, with buy-let borrowers’ loan-portfolio values decreasing since 2003.
It is believed that landlords or those considering entering into a buy-let plan are now including the possibility of base rate rises when choosing a mortgage, providing extra stability and adequate room for any price increases should they arise.
John Heron, managing director of Paragon Mortgages, said that landlords are displaying “a responsible approach” to borrowing, suggesting they would be able to cope with a rise in monthly payments.
“They remain well placed to add to their property portfolios in order to meet growing tenant demand,” he added.
Paragon Mortgages specialises in the buy-let mortgage sector and was established in 1985.
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