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nginx
4th August 2026 | Baya financial

Month: October 2022

Should you still be buying property?

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What should property investors do now?

This week is a tricky one for the mortgage world, but it’s really important to remember that these things are all temporary. There have been plenty of similar situations over the years and we have forgotten about many of them!

What do you need to remember as an investor?

* You’re in this for the long term, so a small price correction (which is likely) shouldn’t affect your long-term goals. Plan when you’ll need to refinance around this though, short fixed rates may not be the preferred option.

* Cash flow is the most important factor! Price all your deals with a high-stress rate (I would use at least 8% at the moment) and make sure it works at that price. Be careful with single-let properties; blocks of flats, mixed-use, HMOs, and holiday lets will increase your cash flow.

* Bridging hasn’t changed (for now!) so there are plenty of opportunities to pick up properties within broken chains or situations where people need to sell. Where there is uncertainty there is opportunity. Just watch out for your exit (and remember a good broker will be all over this, question them if they aren’t!)

* Don’t panic! This is one week, as long as your ROI is good then you’ll be fine!

Should I take out a variable rate mortgage?

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I feel like we need a daily update at the moment!

The latest from late yesterday was that swap rates are settling, and we can see this morning that more fixed rates are creeping back in today.

But… there is still talk of further base rate changes, and two specialist lenders have already stopped lending on existing cases that aren’t already offered. So there is still much uncertainty.

There are some variable rates around though, and they are much less likely to be pulled, so you have more certainty over completion – although not on the rate you will be completing on!!

Is it a good idea??

  • You’ve got to take a calculated risk. What could the rate go up to and does it still work on that basis?
  • Are you getting the property at a good price so the risk is worth taking?
  • What are the alternatives? If you need to redeem a bridge or complete something you’ve committed to then this may be the best of not very many options!

As always, give me a call if you want to chat anything through…