A recent report from the mortgage product and service board has suggested that buy to let Landlords will continue to refinance their assets throughout 2019. Although following this year the number of transactions is expected to reduce somewhat.
Richard Rowntree chair of the mortgage product and service board said: “We do expect remortgaging and product transfers to continue to be strong in 2019 as they were in 2018, especially as previous 2- and 3-year fixed rate products come to an end.
But with a move to over half of all new mortgages going on to 5-year fixed rates, the rate of churn will not continue at the same level into 2020.”
He added: “As for the buy-to-let market, here we expect to see the impact of tax, legislative and other changes continue to be felt, particularly as landlords have had to pay their first increased tax bills.”
According to the most recent Private Landlord Survey, published in January 2019 (available here) carried out by the UK Government 94% of landlords rent property as an individual, 4% as part of a company and 2% as part of some other organisation, increased legislation is expected to push landlords into incorporating their properties, with advantageous tax benefits available, along with extended financing options, offering more flexible financing terms for buy to let finance.
According to this study there are currently 1.5 million landlords in the UK holding 3.4 million deposits.
The number of landlords is expected to continue to reduce with 10% of landlords indicating that they are going to reduce the size of their portfolio with a further 5% indicating that they will sell their whole portfolio.
Commercial Mortgages Broker specialise in buy to let portfolio refinancing and we have helped lots of clients to go through this process, get in touch today and we will be pleased to assist with providing both suggestions and ideas around financing options.