Prepare for B2L remortgage boom

Remortgaging in buy-to-let is set to be a big growth area next year.

Platform Home Loans say the niche sector is ready for the taking. Jeremy Duncombe, head of sales at Platform, says: “The big opportunity in buy-to-let for 2003 is remortgaging. Around 4% of mortgages were buy-to-let in 2001 and for 2002 we think this will be even more.

“As with other products, buy-to-let borrowers are looking for the best rate.”

And Duncombe underlines other opportunities in specialist markets. He says: “The number of self-employed is 3.2 million and growing. Around 10.5 million people are not in standard employment and it is getting harder to push that business through high-street lenders.”

But he adds niche lenders are riding to the rescue and says: “The niche market is growing. Credibility is going up and pricing is going down – in 1998 the gap between prime lenders and sub-prime was 3%, now it is closer to 0.5%.”

•Skipton Building Society has launched a new residential buy-to-let mortgage with a discount of 1.30% in the first year, offering an initial rate of 4.40%, with flexible features and no compulsory insurance. The deal reverts to variable rate in year three and is available up to 80% LTV.