This passed me by in December, but I notice its not posted here.
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Buy-to-let investors hit by banks
Buy-to-let (BTL) investors are being hit with interest rates up to 1.2 per cent higher than owner-occupiers as banks take advantage of reduced competition among buy-to-let mortgage providers and refuse to pass on ECB rate cuts to all customers.
The higher interest rates mean that owner-occupiers can borrow up to 10 per cent more than buy-to-let investors. in return for the same monthly repayment commitment.
They are more bad news for property investors already hit with falling demand for rentals and collapsing property prices.
AIB and Bank of Ireland decided earlier this month not to pass on the latest 0.75 per cent ECB rate cut to buy-to-let investors on variable rate mortgages, unless they had tracker mortgage contracts. In contrast, however, owner-occupiers on both tracker and standard variable rate mortgages received the full benefit from the cut.
While both banks had passed on the previous 0.5 per cent ECB rate cut to all variable rate customers in November, they specifically excluded buy-to-let investors from the subsequent cut.
The failure to pass on the latest cut means that buy-to-let customers, who had been paying rates that were typically just 0.2 per cent above the rate charged to owner-occupiers, are now facing rates as high as 0.95 per cent or 1 per cent above the owner occupier rate.
AIB’s standard variable rate mortgage was reduced to 3.75 per cent earlier this month for owner-occupiers, while the standard variable rate for buy-to-let investors remained unchanged at 4.7 per cent.
Prior to the ECB’s round of rate-cutting over the last two months, owner-occupiers paid 5 per cent and investors paid 5.2 per cent.
The gap between Bank of Ireland’s rates for owner-occupiers and investors recently widened to 1 per cent for existing customers and up to 1.2 per cent for new business, after the bank kept the standard variable rate for investors unchanged following the last 0.75 per cent ECB cut.
Buy-to-let lenders’ pricing power has improved sharply in recent months as a number of lenders, such as Permanent TSB, have left the market after finding the risk-reward ratio unattractive.
[broken link removed]
Buy-to-let investors hit by banks
Buy-to-let (BTL) investors are being hit with interest rates up to 1.2 per cent higher than owner-occupiers as banks take advantage of reduced competition among buy-to-let mortgage providers and refuse to pass on ECB rate cuts to all customers.
The higher interest rates mean that owner-occupiers can borrow up to 10 per cent more than buy-to-let investors. in return for the same monthly repayment commitment.
They are more bad news for property investors already hit with falling demand for rentals and collapsing property prices.
AIB and Bank of Ireland decided earlier this month not to pass on the latest 0.75 per cent ECB rate cut to buy-to-let investors on variable rate mortgages, unless they had tracker mortgage contracts. In contrast, however, owner-occupiers on both tracker and standard variable rate mortgages received the full benefit from the cut.
While both banks had passed on the previous 0.5 per cent ECB rate cut to all variable rate customers in November, they specifically excluded buy-to-let investors from the subsequent cut.
The failure to pass on the latest cut means that buy-to-let customers, who had been paying rates that were typically just 0.2 per cent above the rate charged to owner-occupiers, are now facing rates as high as 0.95 per cent or 1 per cent above the owner occupier rate.
AIB’s standard variable rate mortgage was reduced to 3.75 per cent earlier this month for owner-occupiers, while the standard variable rate for buy-to-let investors remained unchanged at 4.7 per cent.
Prior to the ECB’s round of rate-cutting over the last two months, owner-occupiers paid 5 per cent and investors paid 5.2 per cent.
The gap between Bank of Ireland’s rates for owner-occupiers and investors recently widened to 1 per cent for existing customers and up to 1.2 per cent for new business, after the bank kept the standard variable rate for investors unchanged following the last 0.75 per cent ECB cut.
Buy-to-let lenders’ pricing power has improved sharply in recent months as a number of lenders, such as Permanent TSB, have left the market after finding the risk-reward ratio unattractive.