Pete Wargent, co-founder of buyer’s agents portal BuyersBuyers said existing investors were most likely to absorb higher interest rates, given that mortgage rates had remained at record lows and buffers had increased over the past two years.
“Some investors will aim to increase their rents when the next rental review comes around, especially given that vacancy rates are already at a 16-year low in January, and have declined further in February.” “I also have savings that I could tap into, if things get a bit tight. However, higher mortgage rates will impact my borrowing capacity when I take another loan because the assessment rate will be higher, so the amount I’ll borrow will be lower.”Jack Henderson, a buyer’s agent with Henderson Advocacy, who helped Mr Vekiarellis secure two of his investment properties, said most investors would be able to ride the expected rate rises this cycle.
Peter Esho, co-founder of property investment company Wealthi, said a rise in interest rate would hit owner-occupiers more than landlords.offsets the rising interest cost for landlords,” he said. “If you buy a good investment, which can grow its income faster than interest rate increases, you’ll actually benefit from interest rate rises.”