Increase In Landlords Remortgaging
The most recent Financial Adviser Confidence Tracking (FACT) Index produced by Paragon Bank PLC reveals that there has been a large increase in the number of buy to let remortgage cases submitted by landlords between the first quarter of 2015 and the first quarter of 2018.
The above index is produced from information provided by 201 mortgage intermediaries.
Back in Q1 of 2015, 29% of remortgage requests for buy to let mortgages came from landlords. In Q1 of 2018 this had risen to 52%. We are sure that you will agree this is a very big increase.
However, it is interesting that between the above two periods the number of landlords purchasing their first buy to let property and seeking a mortgage fell from 19% in Q1 of 2015 to 13% in Q1 of 2018. Also, the number of landlords looking to remortgage to buy further buy to let properties dropped from 39% in the first quarter of 2015 to 22% in the first quarter of 2018.
In the first quarter of 2018, 60% of remortgage requests from landlords were with a view to obtaining a better rate of interest than they were getting from their existing lender. Only 30% were looking to raise further funds.
If you are a landlord you are probably aware that there are numerous lenders here in the UK that provide remortgage finance to landlords so it is important that, if you are shopping around, you endeavor to obtain the most competitive remortgage package available. Do bear in mind that when assessing this you should not only take into account the interest rate being charged by the lender but also the likes of any fees such as an arrangement fee, valuation and legal fees.
Yes, you can do your own research to try to seek out a competitive remortgage deal but you could also use the likes of us to assist. We are able to put you in touch with a commercial mortgage broker who has an extensive panel of lenders at his or her disposal.