Fergus Wilson, the ex-mathematics teacher dubbed Britain’s buy-to-let ‘king’, says he is selling 700 rental properties before interest rate rises bring ‘slaughter’ to landlords in the UK housing market.
Mr Wilson, who together with his wife Judith rank among the 1,000 wealthiest Britons according to this year’s Sunday Times Rich List, said it was inevitable that interest rates would rise from a historic low, pummelling rental landlords.
‘You’ve got a lot of people who have taken out a mortgage and are right up to their throats’ in debt, said Mr Wilson as he settled into a black armchair at a hotel in Maidstone, south-eastern England. ‘As soon as rates go up, they’re going to be slaughtered.’
Rates are forecast to rise, hurting buy-to-let landlords in particular because they pay more than other mortgage borrowers. The Bank of England base rate, a benchmark for British mortgages, will reach 1.25 per cent by the end of next year from its current 0.5 per cent, according to economist estimates compiled by Bloomberg. Most landlord loans are already much more costly, at 4 per cent or higher, according to personal finance website Money facts.co.uk. The UK has about 1.2 million buy-to-let loans, 11 per cent of the total. Continue reading
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