As the first quarter of 2013 comes to a close, it’s positive news with figures reflecting a 26% peak in buy-to-let remortgaging activity. According to research by “Mortgages For Business” it is due to landlords wanting to raise capital to expand their portfolios.
It seems the main pull encouraging re-financing is the potential to make significant gain on high gross yields in the current economic climate. Standard properties increased in yield from 6.3% to 6.4% with HMO’s remaining highest yielding property type at currently 10.5%.
Remortgaging has accounted for 69% of all buy-to-let transactions since the start of 2013, which has rose from 43% in the last quarter of 2012. It is the highest record for one single quarter since the start of the Broker’s Complex Buy-to-let Index in 2011.
Although, the general thought is that the buy to let market has remained at a standstill for a while now, especially with lenders shrinking the range of mortgage products dramatically within the last quarter, opting for smaller more selective ranges and weeding out less popular products; the figures show that there are positive developments within the buy to let market, rather than it being a sign that it is becoming harder for property investors to obtain lending.
Should re-financing your portfolio be something you are interested in looking into further or you are interested into looking at what rates we could provide for you for any type of mortgage, please don’t hesitate to contact Chris, Luci or Wendy on 01482 638300 or e-mail to info@icf-group.co.uk
