There’s been a three per cent rise in the number of buy-to-let landlords remortgaging their properties, according to new figures from Connells Surveys & Valuation.
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Tax changes force landlords to reevaluate
Connells Surveys & Valuation discovered the rise in remortgaging, despite the fact that the number of valuations has dropped below its spring average.
“While buy-to-let valuations are at half the typical average for March, those who have decided to stick it out in the sector are trying to recoup the loss of mortgage tax relief,” says John Bagshaw, corporate services director at Connells.
Bagshaw believes with market rents not yet rising, one of the few alternatives has been to remortgage. “More landlords have taken this path in March, given the lower cost of borrowing and higher property values.” he added.
Remortgaging? Prepare for percentage based fees
Meanwhile, figures from Mortgages for Business suggest that percentage-based arrangement fees are now standard for buy-to-let mortgage products.
The data shows that 44 per cent of all buy-to-let mortgage products now carry a percentage-based fee, overtaking flat fees for the first time in four years.
And unfortunately, there’s also been an increase in the average flat fee, up to £1,446 from £1,397, and with the dearth of buy-to-let mortgage products at the moment, landlords won’t have much choice in what kind of mortgage they take out.
What do you plan to do in the light of recent tax changes? Let us know in the comments.