Increasing numbers of landlords are remortgaging to enlarge portfolios

Alex Johnson

2e71305d505846398e3f6c248f778db86cf422a5 300x225 Increasing numbers of landlords are remortgaging to enlarge portfoliosNew figures from specialist buy to let broker Mortgages for Business suggest more landlords are remortgaging compared to a year ago as they plan to expand their portfolios.

The percentage of landlords refinancing Houses in Multiple Occupation (HMO) has jumped from 55% in the last three months of 2011 to 80% over the last three months in 2012. It appears that investors have been remortgaging lower value HMO property in particular.

David Whittaker, managing director of Mortgages for Business said: “Gross yields on buy to let property are particularly attractive at the moment thanks to the mess which the first-time buyer market finds itself in. Property prices are flat and tenant demand is stratospherically high, which is why more landlords are refinancing and manoeuvring themselves into a position to add to their portfolios.

“We expect the range of products to recover and improve in 2013. All eyes will be on Funding for Lending this year. It has flattered to deceive so far but plenty of the head honchos at the Bank of England think it will spring into action in 2013. If it does, we should see the availability of buy to let mortgages increase. Landlords have been saying lenders aren’t doing enough to help them and cater for their ambitions, so 2013 should bring more joy for frustrated investors.”

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  • zeempie

    This blog is a poor excuse for ”journalism”. Rather, it is free advertising straight from the Mortgage lender’s PR company to encourage more Buy to Let business. From 55% to 80% with no numbers provided? What are the actual numbers, Alex, silly man?

  • PaulOnBooks

    I do like the expression “HMO”. So much shorter than “crappy bedsits knocked together with plasterboard so we can get the maximum out of housing benefit”.

  • VicTheBrit

    You forgot the 15 doorbells on that mid-terrace slum in Manchester or Newcastle…

  • julianzzz

    Buy to let is a highly destructive Ponzi scheme that is destroying young people’s lives. It’s foundations are built on housing benefits, a drag on the taxpayer that hopefully is beginning to end. Let’s hope that investment opportunities shift back into productive industry and job creation rather than speculative activity in other people’s misery.

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