LendInvest has seen a rise in demand for remortgages in the buy-to-let market, as investors look to secure “properties and profitability for the long term”.
The specialist property lender asked two of its regional business development managers about trends in the market. Both noted increased remortgage enquiries, as landlords look to secure long-term stability in their portfolio.
“We have seen a lot of demand for day one remortgages as investors wish to pull out profits to reinvest towards their next project,” said Rhys Evans, business development for South London, South Essex and Kent at LendInvest.
“Remortgages on short-term lending have also increased as investors are looking to snap up the buying opportunities while they can due to the increased competition. While a post-Covid realignment of where everyone lives and works hasn’t quite materialised as widely as was expected, we’ve still seen soaring demand for houses and family homes.”
He also highlighted an increase in landlords fixing their rates for a longer-than-usual period due to macroeconomic uncertainty.
“Overall the mood in the remortgage market – and wider buy-to-let market – so far has been pointing towards finding this stability in uncertain times,” he added. “So whether it is releasing profits to improve existing portfolio stock or remortgaging onto longer-term fixes, securing properties and profitability for the long term is on the top of the agenda.”
Tatyana Stefanova, business development manager in Scotland for LendInvest, said she has seen about a 10 per cent rise in remortgage enquiries.
She also noted that in any remortgage deal, landlords now have to factor in the upcoming deadlines for improved energy efficiency in their properties.
“The desire to fund upcoming refurbishments might mean more remortgages are looking at equity releases where they want the funds to make the necessary improvements, either in the one property they are remortgaging or for more properties across the portfolio,” she added.
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