Buy-to-let re-mortgage activity very high and increasing

Re-mortgaging activity has increased significantly in recent months, helped in no small part by record low mortgage rates and continued house price rises across most parts of the country.

This combination is helping buy-to-let landlords re-mortgage to a lower interest rate and save vast amounts on repayments in the process, so it is no wonder re-mortgaging has reached record levels.

The proportion of buy-to-let re-mortgages has risen by11% over the last 12 months, thanks to an increase in mortgages available to landlords, presenting them with an opportunity to switch mortgage firms to find more attractive rates.

Re-mortgaging overall is up almost 20% year-on-year, supported in part by the fact that lenders have launched some new products widening criteria to more niche markets, helping to drive re-mortgaging.

Many landlords who have been saddled with lenders on less than competitive interest rates, or stuck on higher standard variable rates, have been able to switch to new lenders. Rising property prices have also had an impact on re-mortgage growth, especially in London and the South East.

It is expected that demand for re-mortgaging will continue to rise in 2018, especially if there are further rate rises. There is likely to be a shift towards more consumers considering five-year fixed rates, as the risk of rate rises remain for the time being.

If you are thinking of re-mortgaging and would like help, please get in contact and one of our advisers will be happy to guide you.