As the cost of living continues to rise, many landlords are finding it increasingly difficult to keep up with their mortgage payments. A recent survey conducted by the National Landlords Association (NLA) has revealed that one in three landlords are failing affordability tests when remortgaging. This means that they are unable to secure a new mortgage deal that is suitable for their current financial situation.
The survey also found that the majority of landlords who failed the affordability tests were aged between 45 and 54. This is likely due to the fact that this age group is more likely to have taken out mortgages with higher interest rates, which are now proving to be unaffordable. The survey also revealed that landlords in London and the South East were the most likely to fail the affordability tests.
The NLA has warned that landlords who fail the affordability tests could face eviction if they are unable to make their mortgage payments. This could have a devastating effect on the rental market as landlords may be forced to sell their properties, resulting in a shortage of rental properties available.
The NLA has urged landlords to seek advice from a qualified financial advisor before remortgaging. They have also recommended that landlords shop around for the best deal and make sure that they understand all of the terms and conditions of any new mortgage agreement.
It is clear that the rising cost of living is having a significant impact on landlords. The NLA’s survey has highlighted the importance of seeking advice before remortgaging, as this could help landlords to secure a mortgage deal that is suitable for their current financial situation.