A mortgage expert has urged landlords not to panic as buy-to-let mortgage rates continue to rise.

Dan Lee (pictured) of Total Landlord Mortgages says he’s seen increasing number of landlords getting cold feet about taking on new debt as interest rates rise across the mortgage board.

His comments follow research by Less Tax For Landlords, which showed that a privately-owned portfolio with £2m worth of mortgages secured against it charging a two per cent rate of interest, earning a gross rental yield of £240,000 annually with £48,000 of tax deductible expenses would produce a net profit of £92,344 based on 2021/22 tax year rules.

If the same portfolio remortgaged onto a rate of 3.75 per cent, net profit would almost halve to £50,344, it claims.

“Obviously there’s a lot of doom and gloom out there right now and everyone is stressing about rising interest rates”, says Lee.

Two decades

“But my two decades or more of experience in the mortgage teaches me that rates are not high – they are just returning to a realistic level.”

Lee says that landlords have become used to paying the rock bottom interest rates that were introduced following the financial crash of 2008 and kept low ever since artificially by the Bank of England, including after Covid.

“I cannot see the bank of England allowing mortgage interest rates to reach eight or nine percent that they hit during the late 1980s and early 1990s, because we’re all so much more in debt than we use to be” says Lee.

“While the government would not step in if there was a stock market crash, they would if there was a property crash as we saw at the outset of Covid with the lowering of interest rates and the stamp duty holiday”.

“So it would be wise for applicants to prepare for mortgage rates of about four or five percent” Lee says talk of a property crash is also misleading – because the ‘unnatural growth’ in the market created by cheap mortgages, alongside huge competition for limited stock, pushed up prices by 20% in some areas, and that a correction is bound to happen.

“One has to remember when investing in property- this is generally a long term investment, not short term, therefore rates are bound to fluctuate over the term of a mortgage”

Read more about landlord mortgages.


  1. So, not to worry if your net profit halves – and don’t worry if your portfolio drops in value by 20% – it’s all just “natural”.

    And – be sure you see the nice mortgage man to take out some extra debt at higher rates – assuming your massive drop in net profit and property value still allows you to borrow a fiver.

  2. Don’t panic, but also, quick everyone, do panic and phone up the nice mortgage man above today to remortgage now before rates hit 500% next week.
    Nearly every article on here lately has some obvious and huge self-serving claptrap bias in it due to scaremongering by so called ‘experts’. It is starting to become like the Daily Mail.

  3. “I cannot see the bank of England allowing mortgage interest rates to reach eight or nine percent that they hit during the late 1980s and early 1990s, because we’re all so much more in debt than we use to be” says Lee.

    Facts for Lee…
    Interest rates are generally dictated by global events that are out of the Bank of England’s control

    Remember the ERM debacle?
    Couple of Bank of England base rates below highlight the reality of the situation. The ‘80’s pretty much started and ended with Base rates almost the same around 15% That was not B of E “Choice” it had NO CHOICE. Mortgage rates ALWAYS exceed Base rate too don’t forget so a base rate of 15% could mean a BTL mortgage of 20%

    28/10/1981 15.13%

    06/10/1989 14.88%

    I suggest Lee reads the Advice from the Financial Conduct Authority…
    “The value of your investments can go down as well as up, so you could get back less than you invested”

    Interest rates hit over 15% in the 80’s not the 8 or 9 he writes about… such lack of knowledge or blatant misinformation is what we have come to expect from Bankers.
    Or is he promoting another round of Mortgage Mis-selling with RBS, Northern Rock etc?

    • And also, back in those days, the economy was less inter-connected globally than it is now post globalisation. Meaning that the level of control over the levers was far greater than now. Now we have cost-push inflation from world markets, largely due to war in Ukraine, but also supply chain issues post-covid.

      So what do we do? Use measures that in the past were used to address demand-pull inflationary pressures nationally!! This will do NOTHING to reduce inflation, and in fact will increase it as it will increase costs of mortgages and other borrowing, not just for individuals and families, but for businesses as well – pushing up prices. And at a time when we have a cost of living crisis!

      How did these economic dinosaurs get in to positions of power?

      • They proably have a useless degree in something like economics or worse – banking! and are about as trust worthy as the average estate agent, car dealer, MP!

  4. Interest rates were always bound to increase from the very low levels we’ve had. Any investor should know & be prepared for this.


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