UK landlords seeking more remortgages

Posted on Monday, May 18, 2015

Buy-to-let landlords are rushing to remortgage as record low rates look increasingly attractive, new data from a mortgage broker shows.

In the first three months of 2015, 66 per cent of mortgages for standard - or vanilla - buy-to-let properties were remortgaging loans, with the rest being new mortgages for purchase purposes.

David Whittaker, managing director of Mortgages for Business, said: “Record low mortgage rates are driving wave upon wave of landlords to reassess their finances.

“A great deal agreed last year may be uncompetitive by today's standards. So this stampede is completely rational – it represents a charge by landlords to make the most of an unprecedented economic situation.”

The most attractive two-year fixed-rate remortgage deal with a 75 per cent loan-to-value now sits at 2.5 per cent with a £2,495 fee.

In comparison, in April last year, the best buy rate was 2.99 per cent with a 2.75 per cent fee.

In terms of a five-year fix, the best remortgage deal now carries a 3.95 per cent rate and £1,995 fee. Last year, the top rate was 4.95 per cent, albeit with a slightly lower £1,495 fee.

Between October and December last year, remortgaging represented a lower proportion of 62 per cent of activity.

It comes as remortgage deals from specialist lenders become more competitive, Mortgages for Business says

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