Upturn in Remortgages Indicates a Summer Surge

NUMBERS of remortgages completed on buy-to-let properties jumped in the second quarter of the year, according to Mortgages for Business, say Bournecoast Property Agents.

Mortgages for Business back this up by saying its buy-to-let index found that remortgage deals outweighed purchase in the three months to June as landlords sought to raise capital in order to take on new properties over the summer.

For semi-commercial properties, remortgages accounted for 90% of all transactions in the quarter.

“The number of products on the market has also increased.” says Simon Tebbutt of Bournecoast.

“Mortgages for Business point out that the products available rose to 465 which is 31 higher than in the first quarter of the year, while the number of lenders in the market remained at 27.”

Simon says, “A recent industry report identifies that the Bank of England’s Funding for Lending Scheme (FLS) had contributed to increased availability and reduced rates.”

He added: “Buy-to-let mortgages are at their most affordable since the downturn. Lenders have gratefully accepted the help on offer from FLS and have passed some of the savings on to investors in the form of lower rates and a wider choice of mortgages.

“This has encouraged a record proportion of refinancing; with landlords taking advantage of cheaper remortgage deals in order to expand their portfolios further down the line.

“Yields are still strong and they look set to remain that way. The demand for rented accommodation is still very high, despite a slight improvement in first-time buyer numbers.”