Tracker loan holders 'must plan ahead' - buy to let mortgages

04 March 2009

People with buy to let mortgages that track the Bank of England base rate may wish to plan ahead for when their deal comes to an end, it has been suggested.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders, said that borrowers can find their costs rising when a tracker loan expires and they are given new rates.

Property owners are "unlikely" to find another deal that is as cheap, he explained, adding that investors may have to get used to their repayments being more costly.

"They may adjust to a new tracker product that may be a little more expensive than they are used to paying currently, but it should still be very affordable," Mr Clarke remarked.

And he advised those considering taking on a fixed-rate mortgage to ensure they understand the commitment they are making.

The base rate currently stands at one per cent, its lowest level in the history of the Bank of England.