Buy-to-let remortgages fall to two-year low
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The number of landlords remortgaging their buy-to-let properties has fallen to its lowest level for over two years, research from Paragon Mortgages reveals.
Out of 200 financial advisers polled 39% applied for a buy-to-let remortgage deal for their landlord clients in Q3, the lowest level recorded by Paragon since Q1 2007.
Meanwhile the proportion of landlords securing buy-to-let deals to expand their portfolios has hit its highest level since 2001.
Some 48% of advisers reported that landlords had extended their portfolio in Q3, compared to 31% at the end of last year.
Only 10% of business via financial advisers surveyed was conducted by first-time landlords, having peaked at 42% in Q4 2001.
John Heron, managing director at Paragon Mortgages, says: “Landlords are happy to stay with their existing lender and we think this will remain the case for the foreseeable future.
“We haven’t experienced the mass sell-off of buy-to-let property during the recession that some commentators were predicting, but buying activity has been subdued.
“As house prices have stabilised, landlords now obviously believe that it is a good time to start expanding before house price inflation picks up again.”
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