Landlords taking action

One out of every three property valuations came from owner occupiers or landlords re-mortgaging in June, new research shows.

According to the latest research, growth in re-mortgage valuations is 10% above the five-year average for June.

Standard re-mortgaging accounts for 23% of market activity, while buy-to-let re-mortgaging accounts for a further 16% of loans. When combined, both types of re-mortgaging are responsible for more activity in the mortgage market than first-time buyers, buy-to-let or those who own a property and are looking to move.

As landlords’ margins are eroded and the cost of living increases for owner-occupiers, many owners are looking to re-mortgage to reduce their monthly repayments. The lower rates on offer are incentivising homeowners to refinance now, ahead of a potential base rate rise later in the year.

Low interest rates on offer are attracting owner-occupiers and landlord’s eager to offset rising costs. This has led to re-mortgage activity more than doubling since 2009 as a percentage of the market, with a base rate close to zero for a decade.

While it now appears unlikely that the Bank of England will raise the base rate in August, the economy remains turbulent. Many landlords are finding they have less disposable income, so the ability to cut their monthly repayments is proving enticing. The political uncertainty from Brexit and the hung parliament are encouraging landlords to refinance to ensure they are better prepared, should the economy slow down later in the year.

Help required?

If you are looking for a new or re-mortgage please do get in contact and one of our advisers will be pleased to assist.