Remortgages are increasing in demand as homeowners are seeking to avoid the increases of their lender’s standard variable rate (SVR).  There is also the opportunity to grab a cheap remortgage before the interest rate offerings increase to higher levels.  Lately many lenders have pulled their cheapest remortgage deals and replaced them with slightly higher deals.  There is also the increase in demand from landlords seeking to add to their portfolios.

There is a greater need than ever for landlords to have the ability to offer more rental properties.  Hopeful home buyers are still having a lot of difficulty coming up with a deposit that is needed to make a purchase.  This is pushing demand for rental property up higher and the buy to let market is doing well compared to other areas of the housing market.

In a report compiled from intermediaries’ responses by Paragon Mortgages it was revealed that landlords gave the following reasons for seeking a buy to let mortgage in the first three months of 2012:

·         39% sought a portfolio expansion

·         31% needed remortgages

·         23% were first time landlords

·         5% sought property substitution

·         2% listed other reasons than the above

Landlords will not likely see any decline in demand for more rental properties.  Lending is expected to become more difficult for hopeful homebuyers.  Experts have warned that the weak economy as well as the economic climate of the eurozone will continue to impact lending in the UK.  Lending is expected to tighten as a more cautious outlook develops between lenders pushing tighter criteria for approval as well as lower loan to value offers. 

Lenders are more optimistic about the buy to let market and are offering more buy to let products for landlords to choose from especially buy to let remortgages.