will landlords benefit from interest rate cuts?

[jigsaw]

hi guys, heres my situation:

i bought my apartment as an owner occupier almost 2 years ago and was exempt from stamp duty, on the 26th of feb it will be 2 years and i intend to rent it out as i wont be liable for stamp duty clawback. im currently on a fixed rate mortgage but this is due to expire in 2 weeks time and i intend to move to a variable rate mortgage.

what i want to know is will i benefit from the interest rate cuts as a landlord when i go onto the variable mortgage?

cheers guys

jigsaw

 

[jigsaw]

anybody?

 

[rmelly]

Bueller? Bueller? Anybody?

 

[cancan]

if the new rate you get is lower, you benefit
if the new rate you get is higher, you don't

Ring a bank.

 

[Bronte]

I take it you have an owner occupier mortgage rather than an 'investor/landlord' mortgage where interest rates tend to be higher. The bank will not know you have rented out the property unless you tell them, therefore the rate will just go to the prevailing variable rate. Depending on your mortgage terms and conditions you may or may not be obliged to tell your lendor you are renting it out.