Landlords across the country were most often remortgaging to take advantage of the low interest rates currently, new research from buy-to-let specialist lender Paragon reveals.
The latest Financial Adviser Confidence Tracking Index (FACT) survey shows that almost half (45 per cent) of remortgage customers in the second quarter of this year switched their deals over lower rates.
Another top reason to remortgage in the second quarter was to raise capital with 44 per cent of buy-to-let mortgage holders doing so.
While the figures show a decline in both buy-to-let and owner-occupier remortgaging for the second consecutive quarter, there are underlying signs that the mortgage market remains stable, Paragon says.
Brokers’ new business has edged up to 22.7 cases in the second quarter of 2015, from 22.6 cases in the previous three months. Nearly half (46 per cent) of brokers expect to have more new business in the next 12 months.
“Although it is disappointing to see a drop in the number of remortgages, it is important to note these are incremental fluctuations and, as whole, when viewed from a broader perspective, the figures remain well within the average range,” John Heron, managing director of Paragon Mortgages, said.
Second-quarter owner-occupied remortgages fell to 32 per cent from 35 per cent in the first three months of 2015. The level of remortgage business has now halved since pre-crisis levels.
The number of buy-to-let remortgage cases have also declined from 34 per cent in the last quarter of 2014 to 29 per cent in the second quarter of 2015.
