Interest rate rises could cause havoc in private rented sector
The loan-to-income cap introduced last month by the Bank of England governor Mark Carney did not apply to but-to-let mortgages. Given these are the fastest growing type of mortgages, and have undoubtedly been the major contributory factor to the increases in UK property prices, concerns have been voiced as to what will happen when interest rates rise. Economists say that such an increase could lead a repeat of the high numbers of repossessions experienced during the 2008 financial crisis.
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