It’s now almost two years since the 2022 autumn statement from Kwasi Kwarteng, the former Chancellor of the Exchequer, when he announced a series of pro-growth policies to boost the UK economy. As we all know that was seen by the financial markets as a step too far and their reaction resulted in a rapid increase in mortgage borrowing rates for many. The term ‘rate shock’ was soon felt, painfully in many cases, by those whose fixed rate mortgage deal was ending.

Thankfully, in recent weeks the first bank rate cut in over four years of 0.25% by the Bank of England in August has resulted in a more positive and much welcomed easing of lending rates. Compared to one year ago, at the time of this article being written, the 5-year rate for Sonia Swaps, which influences UK mortgage lending rates was 3.66%, which is some 110-basis points less than one year ago. This recent trend for lower long-term inter-bank lending rates is why so many lenders have been keenly competing for new business of late by offering lower rates. To gain more insight into the mortgage marketplace I spoke at length with James Vince of Castle View Finance who, as well as being a qualified and very experienced mortgage advisor, is also a portfolio landlord.

Given that some national media commentators and social media ‘gurus’ of late have been declaring buy to let as now being a ‘dead duck’ strategy, I firstly asked James what he thinks.

“It is far from being ‘dead’,” said James, “as you only have to read the pages of Property Investor News to see the regular reports of rising rents all across the UK and the increasing rental supply crisis. Yes, lending rates shot up a few years ago but we now have 5-year fixed rate deals at below 4% for those with good equity levels. Yes, it is more complex with tax and other regulations to take into account but there are good opportunities if you take a sensible long-term view.”