Remortgage Products are Aiding Landlords in the Effort to Add more Properties to their Portfolio
Buy to let landlords are having help along the way to add to their portfolio by the many buy to let remortgage products that have entered the market. Through remortgaging current properties landlords are saving on their interest payments associated with their mortgage payments as well as releasing cash equity to purchase new properties. The effort in obtaining a remortgage is paying off due to the high demand for rental properties.
Demand for adequate rental properties has increased in the last few years as many households have chosen to stay out of mortgage debt and rent instead. This could be because they wanted to be able to pursue job opportunities without consideration to location. By renting they were not confined to having to pursue career options that were close to a home. Others are avoiding buying when the value of the home could decline as house prices continue falling. Still others just do not want to take on mortgage debt in such a weak economy.
Some renters haven’t chosen the lifestyle but rather have been pushed into it. Some are renters due to repossession and others because they were not able to obtain approval to purchase a home. Tight lending practices by lenders and the high level required for deposits are keeping many households that desire to purchase a home off of the property ladder. This is despite the cheap cost of borrowing and more affordable housing prices.
Remortgages are currently carrying low interest rates in both fixed rate and tracker remortgages and that includes buy to let remortgages. Not only are remortgages helping landlords add more properties to their portfolio but they are helping new investors enter the buy to let market. Cash equity remortgages are providing new investors the means in which to purchase their first investment property.