{"id":27,"date":"2008-06-19T13:23:28","date_gmt":"2008-06-19T13:23:28","guid":{"rendered":"http:\/\/www.propertyportfoliosoftware.co.uk\/blog\/2008\/06\/19\/mortgage_rates\/"},"modified":"2008-06-19T13:23:28","modified_gmt":"2008-06-19T13:23:28","slug":"mortgage_rates","status":"publish","type":"post","link":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/mortgage_rates.html","title":{"rendered":"Are you tracking your mortgage rates?"},"content":{"rendered":"<p>With the <strong>credit crunch<\/strong> in full swing, more and more landlords are falling into negative cash flow.  This occurs when their rental income can no longer cover their ongoing property-related expenditures.<\/p>\n<p>For example, if your rental <strong>income<\/strong> is \u00a3500 and your property <strong>expenses<\/strong> are \u00a3600, then you are making <strong>\u00a3100 negative cash flow<\/strong> on your property business. This means that you have to subsidise you property through other means.<\/p>\n<p>The biggest expenditure landlords have is the cost of finance on the property (i.e. their buy-to-let mortgage) and the single biggest factor that is turning positive cash flow properties in to negative cash flow is the increase in interest rates!<\/p>\n<p><strong>How do I avoid falling into this trap?<\/strong><\/p>\n<p><!--more--> Too many landlords do not know when their tie-in mortgage rates are expiring and they are falling onto variable rates, which are in some cases increasing their mortgage costs by 70-80%!  If you have fixed-rate mortgages (or any other kind of tie-ins), make sure that you are aware of their expiry dates.  Going from a fixed, competitive rate of, for example, 4-5% on to something closer to 8% could really stretch your finances and turn a positive cash flow property in to a heavy negative cash flow property<\/p>\n<p>Our <a href=\"http:\/\/www.propertyportfoliosoftware.co.uk\">property management software<\/a> solutions will automatically remind you when your mortgages\/finances are due to expire.<\/p>\n<p>Also, start speaking with mortgage brokers and financial advisers about three months before your rate expires to guarantee that you are securing the best deal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the credit crunch in full swing, more and more landlords are falling into negative cash flow. This occurs when their rental income can no longer cover their ongoing property-related expenditures. For example, if your rental income is \u00a3500 and &hellip; <a href=\"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/mortgage_rates.html\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,6],"tags":[14,36,19],"class_list":["post-27","post","type-post","status-publish","format-standard","hentry","category-credit-crunch","category-property-finance","category-property_management","tag-cash-flow","tag-credit-crunch","tag-negative-equity"],"_links":{"self":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=27"}],"version-history":[{"count":0,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=27"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=27"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}