Buy-to-let investors ''should exercise caution''

Buy-to-let investors should be wary of more interest rate rises and must work out their rents for the next year very carefully, according to property experts.

The recent interest rate rise to 5.25 per cent is expected to see many people struggle with their mortgage repayments and an increased amount of housing repossessions and debt.

The Association of Residential Lettings Agents has warned those who buy-to-let that they must ensure they can afford more than just their mortgage and have surplus for maintenance costs too.

Malcolm Harrison, from the association, said: "If you''re thinking of investing in a property today, allow for another interest rate rise this year and work out your mortgage according to estimation, working out if the rent is going to be enough to cover that."

He added that there won''t be a shortage of demand from prospective tenants because the expected rise in mortgages and debt will mean that many will turn to renting as opposed to buying a property.


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