Rate cut "great news" for landlords

Landlords with buy to let mortgages are set to benefit from the Bank of England's interest rate cut of 1.5 per cent.

The base rate now stands at three per cent, which is "great news" for buy to let investors, according to Keshav Thukaram, the managing director of online resource Smartlandlord.co.uk.

Those on standard variable deals that track the Bank's base rate will automatically benefit from the reduction, while lenders may be prompted to make further cuts across their mortgage portfolios.

Mr Thukaram said the government has made "clear signals" to banks and building societies that they must return to 2007 levels of lending.

"New mortgages and new property sales will not gather momentum unless the rate cuts are passed on to landlords for their new mortgages and remortgages," he commented.

The National Association of Estate Agents also called on lenders to pass on the rate cut to consumers.