Remortgage to let deals for landlords have continued to increase
Remortgage to let deals for landlords have continued to increase while other areas of mortgage lending have seen a decline.
Lenders are fully aware of the strength of the buy to let market and are offering more remortgages for landlords while pulling back other mortgage products. Landlords are more than happy to benefit from the cheap remortgage to let deals on offer, which allow them to add more properties to their portfolios. The demand for rental properties is increasing and the buy to let sector is one of the strongest areas of the mortgage market with investors still seeing strong returns.
John Heron the Paragon Mortgages' managing director believes that there will be a continued rise in demand from tenants for rentable properties in 2012. His view is that the private rental sector will be under pressure as a result and buy to let landlords will need access to products that will meet their specific requirements in order to expand their business.
While the demand for remortgages by home-owners has fallen, the demand for remortgages by landlords has increased. Rental properties are in high in demand and this trend is expected to continue for many years to come.
Buy to let deals offered from lenders have grown in number with many offering remortgages for landlords for the first time. Rising rents, cheap buy to let mortgages and short void periods between tenants mean the number of landlords in financial trouble is low and lenders are happy to keep offering remortgage to let deals.
