by Mark Johnston
Buy to Let Investors Look to Remortgage in 2013.
Tenant demand appears to still be increasingly high due to the fact that the property market is still so hard to enter for many first time buyers.
Property prices in the current economic and financial climate have remained stable and therefore many more landlords are now taking advantage of this unique situation.
Landlords are it seems feeling increasingly positive about the prospects for the private rented sector in 2013.
According to independent research, over a third of investors say that they are expecting to purchase more property over the coming year.
Buytoletmortgages.co.uk, a leading buy to let website, is also optimistic about the buy to let market and they are confident that the sector will grow further over the next 12 months.
David Whittaker, managing director of Mortgages for Business, says “gross yields on buy to let property are particularly attractive at the moment thanks to the mess in which the first time buyer market finds itself”.
Therefore, according to recent reports buy to let investors are now increasingly turning to remortgaging to expand their portfolios, compared with just 12 months ago.
Data shows that many lenders now consider the buy to let industry to be a safe bet in terms of lending.
However, although the number of buy to let lenders has recent increased, the amount of actual products available has fallen, but some industry insiders believe this will change over the coming months due mostly thanks to the funding for lending scheme.
Some experts state that the UK buy to let remortgage market is currently very buoyant, there are numerous mortgage companies competing for business.
The philosophy behind a buy to let remortgage is that it gives investors the ability to use any capital they have built up in their properties to purchase other properties.
Buy to let mortgage companies have however slowly moved the maximum that can be borrowed from a conservative 75 per cent and landlords can now remortgage up to 90 per cent of the property value.
The Woolwich is offering a rate of 3.49 per cent on a 2 year fixed rate deal for those buy to let landlords looking to remortgage. It comes with a loan to value (LTV) of 60 per cent.
However, one of the best buy to let remortgage deals comes from Natwest, who offer a 2 year fix at a rate of 3.15 per cent on a 60 per cent loan to value (LTV) ratio. It does however come with a lenders arrangement fee of £2,495 but does include free valuation and free legal services.
Nevertheless some mortgage experts have warned that but to let investors looking to remortgage still need to consider the advantages of each mortgage product in the context of cost, flexibility, security and quality of service.
All in all many buy to let mortgage commentators are predicting that this year will be a good year on the whole for the buy to let market.
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