Brokers bracing themselves

Brokers are concerned about the buy-to-let (BTL) re-mortgage crunch as the stamp duty anniversary looms. New research has found brokers are braced for significant issues as they try to deal with what is likely to be a bumper crop of landlords looking to re-mortgage. This is because this April marks two years since the introduction of the higher stamp duty rates for those with more than one property.

Buy-to-let investors rushed to secure mortgages to buy properties ahead of April 2016 when the new rules kicked in. Two years later many will be looking to re-mortgage as their initial 2-year fixed deals come to an end.

BTL brokers expect some problems placing re-mortgage deals for customers this year, this is due to the tighter lending rules for landlords. It seems brokers are clearly nervous about potential issues with BTL re-mortgage cases with the stamp duty anniversary deadline looming.

A record £4.3bn of lending was completed in March 2016 ahead of the introduction of the higher stamp duty rate, with 28,700 BTL mortgages being advanced.

The changes in many lenders attitudes however of offering product transfers via brokers should hopefully assist. Whilst 55% of BTL brokers expect issues, overall it should be seen as a great opportunity for the brokers and their clients alike to explore the options open.

If you are a landlord and would like to review your portfolio or require a new mortgage, please do get in contact. We have a fully qualified and trained team to help you secure the mortgage deal to meet your ongoing needs.