Landlords Look to Remortgage to Increase Growth
Landlords looking to increase profits and grow their portfolios for the future are turning more and more to remortgaging as their lending product of choice. Competitive rates continue to make the remortgage a simple method to free equity within investments. According to data provided by Mortgages for Business, almost 70% of buy to let loans were in the form of remortgages during the first quarter of this year. This is an increase of more than 60% since the end of last year.
The demand for remortgages extends far beyond simple buy to let properties. The latest figures indicate remortgages are entrenched as the vehicle to fund multi-unit blocks as well.
Landlords of today are not just in search of deals which can provide returns for the near future. They are looking for ways to lock into ideal rates and build equity for deals taking place in the mid to long term.
David Whittaker of Mortgages for Business commented on the ideology used in many buy to let deals today, saying: “None of them have cash to sit there and do nothing with, because that’s costing them money. Cash is king, though, so they’re making sure they’ve got the money before they go out shopping.
“Some landlords are preparing to access their money now and will wait to see which way the wind blows on 7 May in the election.”
According to some experts, remortgages are a prime method to purchasing more units, especially for those who are asset heavy, but maybe short on huge amounts of cash.