As many as 70% of portfolio landlords say that they expect to re-mortgage or consolidate loans over the next 12 months, according to newly released data from CHL Mortgages.
The intermediary-only specialist buy-to-let lender ran a new poll and found that 53% of broker respondents had one to five portfolio landlord clients who would re-mortgage or consolidate loans in 2022. Interestingly, 16% highlighted that they had over 10 portfolio landlord clients likely to re-mortgage or consolidate loans over the next 12 months.
These responses emerged during a Lender Spotlight webinar session – held in conjunction with Knowledge Bank - based on the specialist BTL lending marketplace which had over 100 brokers in virtual attendance.
Further polls were taken during the webinar around limited company activity and SPVs.
When asked the question: ‘What percentage of your landlord clients are considering opening limited companies for their BTL properties', 29% of broker respondents said that more than 75% of their portfolio clients were considering the move.
Focusing on SPVs and trading companies, 51% of brokers outlined that they have clients wishing to house properties in a trading company instead of setting up an SPV, with 49% not believing this to be the case for landlords they are working with.
Ross Turrell, Commercial Director, CHL Mortgages, commented: “We know how strong the BTL market has been from a purchase perspective in recent times and whilst we still expect sustained levels of activity from portfolio landlords when adding to their portfolios over the course of 2022, this data underlines the vast re-mortgage potential currently on offer.
“This potential will be driven by considerable numbers of five-year fixed rate deals maturing over the course of the year and the ball really is in the court of proactive advisers to make the most of these re-mortgage opportunities in what remains a highly competitive lending space and an uncertain interest rate environment."