Landlords have been encouraged to remortgage since the Bank of England increased the standard base rate last week, hiking it from 0.5% to 0.75%. The increase was the first increase since last November when the rate was increased from 0.25% to 0.5%. Those entrenched in the Buy to Let sector are now being pushed to consider the possibility of remortgaging before the next potential increase becomes part of the daily conversation.

It has been the opinion of many for some time that buy to let investors have been overpaying for their mortgages. The latest round of increase in interest rates will only exacerbate the problem.

Profitability is key for anyone involved in investing in Buy to Let. With this concept in mind, there is great concern by many within the sector of future increases in interest rates. Any increase in operating costs cuts into the profitability of the buy to let property. Higher monthly outgoings make it more difficult to justify ownership in the property.

There has been talk of an increase in number of hikes in the standard base rate. Some close to the housing market even feel another increase before the end of the year is not out of the question. With this in mind, investors in buy to let should think about the possibility of remortgage before another increase takes place.

A fixed rate remortgage has the ability to take all guess work out of the monthly mortgage payment amount. A fixed rate deal is possible which prohibits any changes in interest rates to affect the monthly mortgage payment.