Buy-to-let investors paying £100 a month more for mortgages

Buy-to-let investors are forking out an additional £100 a month for mortgages, which will squeeze profits amid "relentless" interest rate increases, rising house prices and stricter tax rules. A landlord taking out a typical £160,000 mortgage with a 40% deposit would have paid £262 a month in January, based on the average two-year fixed-rate of 1.69%. This has increased to £365 a month with average rates having risen to 2.46%, according to Property Master, a broker. Chief executive Angus Stewart said rates were rising and deals were being withdrawn "more or less on a daily basis". He added: "Rates may look low from a historical point of view, but the increases we are seeing come at a very bad time. Increased taxes and regulation have already chipped away at profits. Now increased borrowing costs are making margins slimmer still." The Daily Telegraph