Increase in landlords remortgaging says report
Landlords are remortgaging to take advantage of the widest range of products in recent years and to prepare for expected increase in interest rates.
The Mortgages for Business buy to let index shows that the number of buy to let mortgages has now reached 586, giving UK landlords 65 more than just three months ago.
In the first quarter of 2014, 65 per cent of buy to let mortgage transactions were remortgages rather than new purchases.
A full three quarters of transactions against houses in multiple occupation (HMOs) were remortgages compared to 71 per cent in the previous quarter and 69 per cent a year ago. Meanwhile remortgages made up 81 per cent of transactions involving larger, multi-unit freehold blocks, up sharply from 69 per cent last quarter and even higher than the 75 per cent a year ago.
Gross yields have risen on buy to let properties to stand at 6.4 per cent on average. However, houses in multiple occupation still command by far the greatest yields: gross yields on the average HMO are now 9.6 per cent, down slightly from 10.4 per cent late last year but still significantly higher than other property types.
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