Buy to let remortgaging activity 'slows'

27 November 2009

Written by Gavin Elley

Buy to let landlords are currently happy to stay with their existing lender and this will remain the case for a while, according to Paragon Mortgages' managing director John Heron.

He suggested that there are two main reasons why landlords are not remortgaging - there are a low number of loans available and reversion rates following an introductory deal are attractive due to the 0.5 per cent interest rate.

Mr Heron's comments come after Paragon Mortgages research indicated that the proportion of buy to let landlords remortgaging their investment properties has dropped to its lowest level in more than two years.

The company's Financial Adviser Confidence Tracker Index, a panel-based survey of mortgage brokers, discovered that 39 per cent of landlords secured a buy to let mortgage via an adviser for remortgage purposes in the third quarter of 2009.

Reflecting on the overall state of the industry, Mr Heron added: "We haven't experienced the mass sell-off of buy to let property during the recession that some commentators were predicting, but buying activity has been subdued."

Earlier this month, The Council of Mortgage Lenders revealed that with a total £2.1 billion, lending increased ten per cent between the second and third quarters of 2009.

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