Landlords in search of a remortgage are being cautioned not to wait much longer before starting the process. Since there will likely be a surge in remortgage activity before the next potential rate rise in May, those looking for a new deal should start applying soon. This suggestion of urgency is based on the number of applications which will be pouring in over the next few weeks to lenders. Extra demand on lenders may push rates higher in the opinion of some close to the housing market.

Two years ago a rush on remortgage and original buy to let mortgage lending packages took place. This rush was just prior to the new stamp duty changes which were being implemented. Many landlords saw this as the perfect opportunity and moved on it. At the time, many applied for a two year deal due to cheaper rates. Now, the most recent data indicates landlords are more interested in a longer deal such as a fixed, five year loan.

Housing specialists are urging those who are looking for a buy to let remortgage to start the process soon. Administrative pressure will be especially high on lenders who will be forced to deal with an influx of applications. Loans will not be handed out with little scrutiny this year, either. Lenders have been forced to toughen up the approval process per the Bank of England.

Two year deals have a stress test to endure before being approved. The same test does not apply to five year fixed deals. The last quarter of 2017 could be an indicator of what is coming. Those in search of a five year fixed deal increased 7% and accounted for almost 50% of all new enquiries. That was the first time five year deals were more popular than shorter term deals.

Landlords looking to remortgage are now on the clock. Lenders will be placed under heavy pressure as the two year timer is quickly counting down to zero.