But-to-let re-mortgages forge ahead

Re-mortgage instructions recovered to pre-lockdown levels last week, with an increase of nearly 40% compared to the previous seven days, according to recent data.

In the third week of May data recorded the highest volumes of re-mortgage instructions since the week commencing March 9 before lockdown measures were introduced.

Buy-to-let re-mortgage completions are 3.7% lower than the average for the same period last year.

Re-mortgage instructions have spiked since the reopening of the housing market last Wednesday (13 May) as borrowers take the opportunity to capitalise on the increased number of products available on the market and make financially savvy decisions to ensure they have the best products for them.

Restored market confidence and the consequential increase in instructions will continue as additional higher LTV products are brought back to the market and borrowers are able to alter loan amounts or change lender. The industry must continue to work together as demand will likely continue to increase in the coming weeks.

Fixed rate mortgages are now proving to be better value than the tracker type plans, particularly for lower loan-to-value borrowers.

Even for fixed rate higher loan-to-value mortgages, the current cost of borrowing is only marginally higher than tracker products. Fixed rate plans are without doubt becoming more popular especially with the investor with multiple properties.

A recent survey of investors showed they are looking to the long term and wanting to know the outgoings will be fixed, thus giving stability.

Due to the vast range of products available it is important to get independent professional advice so please do make contact and we will be pleased to help.