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Rising Income To Save Landlords From Rate Hike

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Strong occupancy levels and rising rental income is like to put buy-to-let landlords in good stead ahead of a prospective interest rate rise next year, Moody's said. The ratings agency's latest research out today shows that landlords' ability to pay their buy-to-let mortgages is in fact likely to increase if an interest rate hike were introduced thanks to rising rents.

Low interest rates have prompted a gradual decline in arrears in UK residential mortgage-backed securities backed by BTL loans since 2009.

http://www.4-traders.com/MOODYS-CORPORATION-16724/news/Moody--Rising-income-to-save-landlords-from-rate-hike-21228309/

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Low interest rates have prompted a gradual decline in arrears in UK residential mortgage-backed securities backed by BTL loans since 2009."

Is that statement actually backed up? Correlation is not causation. My view is that BTL foreclosures have prompted a decline in BTL arrears buy I'd have to check.

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I don't remember rents falling when the BoE crashed the Bank Rate. So why the repeated logic about that they should rise when rates go up? More likely to lead to exits from the market as people make the eternal calculation between renting somewhere cheaper or even between buying and renting (at the margin) as prices soften.

This. Especially as mortgage rates fall (as they have been doing). Classic early phase activity.

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