Interest rate rise could push up the cost of renting


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The Bank of England’s decision to increase interest rates yesterday could lead to rents rising across the country as some landlords pass on the extra costs to their tenants.

Thousands of buy-to-let landlords are facing a hike in monthly mortgage payments after the Bank’s Monetary Policy Committee raised the rates from 0.25% to 0.5% – the first increase in more than a decade.

While the rate rise will provide some savers with a modest rise in their returns, households with a variable rate mortgage now face higher mortgage interest payments, with several lenders already confirming that they will pass the rate rise in full to its variable rate home loan customers, and this could lead to higher rents.

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