It’s one thing you can count on in an uncertain world.
It’s safe to say that pretty much everyone was pleased to hear about the Bank of England’s Monetary Policy Committee’s September 2023 decision to hold its base rate at 5.25%. Because, let’s face it, after increases every time for fourteen consecutive quarters since December 2021, we were all expecting yet another increase and bracing ourselves for the consequent rise in mortgage rates. So does this mean we can all relax in the expectation of rapidly shrinking mortgage rates? Well, unsurprisingly, no one really knows. The one thing we can say for certain is that if we ever get back to the all-time low rate of 1% that we enjoyed in December 2021, it’s not going to happen anytime soon. So our Guaranteed Rent for Landlords Scheme is still the perfect way to know for sure where you stand!
That’s not to say there aren’t grounds for optimism on mortgage rates. The decision to hold at 5.25% was based on the better-than-expected inflation figures that revealed the day before – but the decision wasn’t unanimous: the committee was split five to four in favour, with chairman Andrew Bailey’s vote as the decider. And, as we reported in August 2023, several of the major banks had already begun offering slight reductions in fixed rate deal costs – and that trend appears to be continuing. Although experts seem to be agreeing that this cycle of interest rates has reached its peak, the suggestion is that rates won’t actually be going down until the UK reaches the Bank of England’s inflation target rate of 2%.
Since that seems a long way away, we think most landlords will find the stability, security and peace of mind offered by the Abel Living Guaranteed Rent for Landlords scheme just as attractive as ever – because simply by signing up you’re securing up to five years’ rental at a fixed and guaranteed rate, paid every month on the nail, regardless of whether your property is actually tenanted – and even if the tenants are in arrears. And then, should mortgage rates start coming down over time, every incremental reduction in your monthly mortgage amounts to a modest pay rise for you!
And getting your rent payments sorted isn’t the only kind of hassle we take off your hands. When you hand over the keys, you also hand over all the stress and day-to-day landlord’s challenges such as advertising the property, sourcing, interviewing, and selecting tenants, carrying out regular and frequent inspections to make sure your property’s being looked after, and even handling repairs and maintenance. What’s more it’s good to know you’re doing your bit to ease the social housing national shortage – so it’s great for your peace of mind as well as for your bank balance!