Landlords re-mortgaging

Buy-to-let re-mortgaging activity has been surging ahead in recent months, with yet more figures highlighting the strength of this sector of the market – and by all accounts, it's set to become stronger still in the coming months.

Figures show that re-mortgaging activity continues to support mortgage lending as a whole, with a total of 26000 re-mortgaging approvals granted during July. This is higher than the monthly average of 24000 recorded over the previous six months, suggesting a definite summer surge in the market.

This isn't the only set of figures to highlight the level of activity either. Additional data shows that re-mortgaging activity rose to 36% of the entire valuations market in July. It's a similar story in terms of the value of those approvals: the total stood at £4.8bn for July, unchanged from June but up from the £4.6bn recorded the previous year, which is also the average seen over the previous six months.

Landlords are very keen to reduce their overheads and re-mortgaging to a lesser interest rate is one way to achieve this aim. The savings to be had are worth the effort especially if the current mortgage is on a standard rate.

This suggests that the low mortgage rates at present are helping those looking to refinance more than those purchasing a property. The growth in re-mortgaging suggests landlords looking to refinance are benefiting from lender competition.

A large number of those landlords re-mortgaging are going onto long-term, fixed-rate mortgages to lock into attractive deals, many feel there could be an economic storm on the horizon as we leave the European Union, and there also are concerns over a base rate rise.

Help required?

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