Buy to let remortgage surge expected?

Many pundits are predicting a surge in remortgage applications from buy to let landlords. This is because, in early 2016 there was a change to Stamp Duty which saw a final rush amongst landlords to buy new properties before the new rules hit their pockets.

 

Has much changed in 5 years in the buy to let market?

Well the market is perhaps more competitive now, with more lenders offering products. This is good news for landlords. Obviously recently, there has been a big impact of the pandemic on some landlords and tenants, with payment holidays opted for.

In addition, we have seen new rules implemented which means that those landlords with four or more mortgaged properties are classified as portfolio landlords. As a result, there are greater checks undertaken by lenders, with most stress testing the background portfolio as well as a stress test on the property the landlord is financing. However, the mortgage industry has invested in technology to make this as smooth as possible.Another change in the last five years is the growing popularity of owning properties through a limited company, one that is set up just to own property (known as a special purpose vehicle, or SPV). This market has grown over the years and there is now more lender choice in this sector than in 2016.Much has changed. But one thing has not. When it comes to buy to let mortgages, speaking to an independent mortgage broker ensures landlords get the most suitable deal for them.

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