Increasing numbers of landlords are remortgaging to enlarge 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.”landlords, renting
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