Buy to let remortgages are going to be important to landlords this year as they seek to meet demand for rental properties.  Deposits are still very high to buy property and lending is tightening so households are expected to turn to renting over buying in higher numbers.  Landlords will be looking to remortgages to help build their portfolios.

John Heron, director of Paragon Mortgages remarked, “Whilst we are not back to post credit crunch business levels, and will not be for some time, there has been a steady improvement in buy-to-let business. It is particularly interesting to see the increase in first-time landlords entering the market, this not only demonstrates confidence in the market but also that buy-to-let remains an attractive business.”

Lenders have been seeing higher costs in lending and have been pushing the costs onto borrowers.  This is true for buy to let mortgages and remortgages as well.  Interest rate offerings are increasing and this is likely to impact how well landlords can meet demand and increase their portfolios.  Lenders are still being cooperative with landlords by offering more buy to let products but landlords have expressed they need more help to be successful and take advantage of the increasing buy to let market.

There is an expectation that lending is going to be tightening but there has been evidence that some lenders are loosening their grip on funds rather than tightening.  For landlords that could use a remortgage it will benefit them to shop around just as homeowners must do for the best and right remortgage deal for their needs.