Many of those with property investments are unaware of the costs of small rises in mortgage interest rates, reveals a new report says Assetz.
The research conducted by the Consumer Financial Education Body discovered that three-quarters of property owners could not calculate the effect on their budget of a rate increase of one percent.
According to the BBC, the figures come despite 51 percent of respondents admitting they believe the Bank of England is set to raise its base rate from 0.5 per cent in the next few months.
Tony Hobman, chief executive of the group, said: “Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages have not thought about what it would mean for their monthly payments.”
Timothy Lambert, head of consulting at L & S Ducalian, recently said that those seeking to invest in properties may also find they are adversely affected by a drop in the number of mortgage approvals being made.
• The City of Edinburgh Council is launching a campaign to remind private landlords they need to renew their registration on time in the coming months to ensure they avoid any financial penalties.
Landlords are required to renew their registration every three years which means over 12,000 of Edinburgh’s applications are due to be renewed in 2010.
Nearly 30,000 applications from landlords have been successfully processed by the Council since the launch of the Scottish Government’s Landlord Registration scheme in 2006.
Several other local authorities in Scotland have already started renewing registrations and early evidence is that a third of landlords are failing to renew on time.
While the Council will issue a reminder, some landlords have not kept their contact details up to date and so should not rely on receiving a notification.
Landlords can register online to gain a 10 percent discount on their fees, or they can fill out a paper application form. A team of experts at the Council are also on hand to give out advice and to help landlords with the renewal process.
With nearly 30,000 landlords on the public register it also means it is now much easier for neighbours to contact a landlord if they need to discuss issues such as common repairs, or if there are concerns about antisocial behaviour.
Councillor Paul Edie, Housing Leader for the City of Edinburgh Council, said: “It’s important we get the message across to all landlords that they need to renew their registration or they are letting their property illegally. Any landlords who haven’t registered yet should take this opportunity to do so now.”
