Lloyds TSB have predicted that the Bank Base Rate (BBR) will rise to 5.5 per cent by the end of the year, which means that the low rates enjoyed last year will rise significantly and hit the professional landlord.
However, David Whittaker, managing director of Mortgages for Business, said that landlords must also be wary of some fixed rate deals: "Watch out for penalties with fixed rate offers...schemes that tie you in to a long period with potential for your rate to vary should probably be avoided."
The lender stated that fixed rate products are a good way of maintaining a consistant income from a property, which allows landlords to have confidence in the fixed costs of specific properties for a definite period. This is especially important to professional landlords as they rely on the income from their portfolio.
