Buy to let remortgaging reaches new high point
The first three months of 2013 has witnessed a new high in remortgaging activity, with more landlords trying to raise enough capital to expand their portfolios, according to research released this morning by specialist buy to let broker Mortgages for Business.
Remortgaging accounted for 69% of all residential buy to let transactions from January to March, up from 43% in the last three months of 2012 and represents the highest on record for a three month period since the start of Mortgages for Business’s index in 2011. Refinancing also accounted for over two-thirds of transactions on Houses in Multiple Occupation (HMO).
David Whittaker, managing director of Mortgages for Business, said: “Gross yields are tantalisingly strong at the moment and that has sparked a real splurge of refinancing as landlords try to unlock enough capital to expand their portfolios and make hay. With so much refinancing going on at the moment, we might well see a purple patch of purchasing activity later on in 2013.”
He added that the number of mortgages on the market fell for the second quarter in succession, down from 444 to 434. “The range of mortgages shrunk over the last quarter,” said Whittaker, “but that’s more because lenders are being selective and weeding out less popular products, rather than a sign that it is becoming harder for property investors to get a mortgage.”mortgages
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