View more on these topics

Landlords plan to remortgage in 12 months

Almost two-thirds (63%) of existing landlords, responding to a major property investor show survey of property investors, have declared their intentions to remortgage within the next 12 months. In contrast, The Council of Mortgage Lenders says only 15% of all residential mortgage holders over the past year have remortgaged. This implies that investor landlords are much more prone to take advantage of the latest cut-price mortgage offers.

If investor landlords carry out their intentions then £30bn buy-to-let loans will be remortgaged over the next year which represents a quarter of the £122bn total expected annual remortgaging for this year.

Mr Schuman a chartered professional surveyor is a typical case in question. His own property company, Magnet Properties, has 12 properties which, until earlier this year were financed by a large fixed rate mortgage of 8%.

He says: As soon as my fixed rate deal finished, I immediately searched the market and found an excellent offer from Paragon Mortgages. The rate of 4.8% saved me over £3,000 per month.

“As an astute landlord with a watchful eye on my outgoings, I will continue to monitor rates, and will not hesitate to switch to a better rate or more flexible deals when they become available.”

A massive 82% of existing landlords plan to purchase at least one further property over the coming months, growing their existing portfolios. Furthermore, 27% indicated that they had multiple planned purchases. Not surprisingly 84% expected the buy-to-let market to continue to grow over the next 12 months.

The main reason for the preference in favour of apartments is that they are easier to rent, being appealing to students, young buyers who can&#39t afford their own homes, and young childless couples.

Nick Clark, director of the Property Investor Show, says: “Our survey shows that confidence in the buy-to-let market remains strong with the vast majority of landlords predicting continuing growth, in both property prices and market size. The general mood of confidence in the market is reflected in by the size of this year&#39s Property Investor Show which is 40% bigger than the 2003 show, making it the number one event for anyone interested in putting their money into property.”

Recommended

moneysupermarket.com plans second building

The company moved from its Chester-based offices to St David&#39s Park, Ewloe just over a year ago and is already planning an expansion to a second building which will be ready next year. Architects are currently designing the look of the new 12,000 square foot office. The expansion is planned in conjunction with an extensive recruitment […]

NatWest becomes latest lender to pull out of self-cert

The lender emailed brokers saying it was withdrawing its selfcert products with effect from August 13, only giving them until close of business on August 17 to submit new cases. Bob Riach, proprietor at Riach Independent Financial Advisers, says: “More lenders will drop out of the market following bad media coverage on self-certification deals. “Last […]

Skipton appoints intermediary sales manager

Lucy moves from Newcastle, where she worked for the past seven years as a branch manager and, more recently, a regional account manager. Her main responsibility will be to develop business in her area, promoting the products of Skipton, and that of its subsidiary company, Amber Homeloans.

Abbey mortgage club prepares for relaunch

The relaunch will include a flexible compliance offering developed through a strategic alliance with support services firm 360. Advisers can choose from a menu of compliance tools – from file audits and risk assessments to technical advice on issues like tax – for a monthly charge starting at £250. Head of TMA Steve Atkins says: […]

Pot Follows Member – or does it?

One of the perceived problems with pensions Auto-Enrolment was the number of small pension “pots” that would be created given that the average UK worker changes employer many times throughout their career. In the early stages of the Auto-Enrolment project this was deemed to be a major challenge, and therefore the previous Minister set in […]