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Raise in interest rate


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Simple really, you should have fixed your rate. I would feel cheeky doing it before a year unless you told them you would be increasing it, if anything, if a 6 month contract, uplift next six months by the RPI change in that period, maybe only 2.5%, but fair all the same.

The market is not directly linked to the interest rates so it may be that he would be paying over-the odds if you upped the rent and thus he would leave.

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Scoobie......raise the rent and lose the Tenant. That's what normally happens because competition is pretty fierce and a difference of £10-25 a Month can be a lot of money to some Tenants.

The fact that IR's have been raised is really something you should have factored into you BTL.

How are you geared for the next 2 IR's that will happen over the next 2-8 Months then?

There is almost a certain IR rise as early as next Month or July on the cards. This has been well documented in the financial papers for the last Month or so.

TheIMF have virtually told the UK Government to raise IR's sooner rather than later.

Not only you will be affected but thousands of Newbie BTL Landlords so be prepared for it.

Some experienced Landlords are cashing in right now by selling slow letting properties in not so good area's and leaving any profits on deposit at 6-6.5%. Smart move I reckon. Cash is King in an uncertain financial property future.

As for myself I am having a Punt on the stock market which is at the moment is a better bet than BTL.


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I would say after the end of the AST is reasonable, if needed at all!!! Be prepared though because they may well move on if you haven't checked the market out thoroughly.

Lots of competition out there and personally I'd rather have a decent tenant at a few £'s/month less than the going rate, than an empty property!!

Weigh up the options and make your decision after taking all aspects into consideration.

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