Buy to Let

Buy-to-let remortgages outstripped purchases by more than 2:1 in 2015

Christina Hoghton
Written By:
Christina Hoghton

Remortgages were big business in the buy-to-let sector in 2015, but the trend is set to reverse with a purchase boom predicted

Buy-to-let remortgages outstripped purchases by more than two to one last year, according to figures from specialist adviser Mortgages for Business.

In the most complex sections of the buy-to-let market – lending to landlords with Houses in Multiple Occupation or those buying larger blocks of flats – remortgaging made up an even greater propertion of deals done, as landlords raced to secure their mortgage repayments last year amid rumours of a rate rise. Around three-quarters of complex buy-to-let business was made up by landlords wanting to switch their deal.

David Whittaker, managing director of Mortgages for Business said: “The results aren’t surprising; for some time now landlords have been making considerable savings through remortgaging. Many have also been releasing equity to make improvements and plan further purchases. However, I anticipate that we will see a reversal of this trend in the first quarter of this year as landlords hurry to expand their portfolios before the Stamp Duty surcharge kicks in on 1st April.

“The number of enquiries for purchase finance is already well ahead of where we were this time last year, particularly from those looking to sell their personally owned property into a corporate vehicle.”

The number of lenders operating in the market remained steady at 33. However, the number of buy-to-let mortgage products available to borrowers grew slightly to an average of 975.