Libor in action

We had a letter today from our mortgage provider saying that, due to inter bank lending conditions, they are intending to raise their SVR mortgages from 4.24% to 4.74%, which, due to the relatively low balance of our mortgage will not make much difference, but several illustrations were given for various outstanding balances, the impact on a £100,000 interest only mortgage being an extra £42 per month.
The reason this wasn't posted in the Money and Finance section is because, the thought that came to me, was more of a social nature. Many buy to let Landlords have mortgages of circa £100,000 on multi properties, which are covered by rents that are already costing huge chunks of tenants income, as rates creep up, will the increase be passed on to the tenant, and indeed would they be able to afford it, or are we about to witness large scale homelessness, and mass repossession of property portfolios, and as such massive decreases in the value of housing stocks.
Admin, please move this if it felt more appropriate elswhere

Re: Libor in action

Paul matey, some if not all of the increase in rent may be covered by the local authority if the tenant is in receipt of social security benefits by way of Housing Benefit, so the local authority is subsidising private Landlords and banks and building societies - good 'ere innit???

Re: Libor in action

Hello Unc.
This occured to me, after years of this being the case, have new lower thresholds on housing benefit been sanctioned to save cash, and abate the public subsidy of private Landlords.