Interest rate cut will 'provide relief' to landlords - buy to let mortgages

09 October 2008

The decision by the Bank of England's monetary policy committee (MPC) to lower interest rates to 4.5 per cent will ease the cost of buy to let mortgages, it has been claimed.

Keshav Thukaram, the managing director of Smartlandlord.co.uk, hailed the MPC's announcement that rates are to be lowered by 0.5 per cent.

It came a day earlier than was anticipated and was part of a coordinated move by several central banks, including that of the US, Switzerland and Sweden - plus the European Central Bank.

Mr Thukaram said that many UK landlords have been struggling as their fixed-rate deals came to an end and they were hit with high variable rates.

The reduction will "provide welcome relief in the current marketplace", he noted.

Meanwhile, the Association of Mortgage Intermediaries stated that the cut will give a "much needed boost" to the market.