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3 in 10 landlords remortgaging – how you can support
As existing products mature, the question is – how might this impact future profitability and could this impending rate shock stop some smaller landlords from adding to their portfolios?
In a reflection of the previous two quarters, the latest Q2 2022 BVA BDRC Landlord survey illustrated that around 3 in 10 leveraged landlords plan to re-mortgage in the next 12 months.
Due to having more properties on average, ‘Portfolio’ landlords (with 4+ BTL mortgages) were suggested to be more likely to remortgage in the next year compared to their ‘consumer’ BTL landlord counterparts (38% vs. 25%).
Looking at this from a product perspective, the research highlighted that around 2 in 3 BTL mortgages are currently on a fixed rate. The incidence of variable and tracker rate mortgages is much lower at 17% and 15% respectively.
It comes as no surprise to see that the majority of landlords intending to remortgage will be looking for the security of a fixed rate. The most popular product for these landlords was said to be a 5-year fix (57%) due to the stability and planning potential it offers. Given the recent increases to the Bank of England Base Rate, only 1% of respondents chose a variable rate.
It’s clear that larger portfolio landlords will remain active and lenders who deliver comprehensive support and innovative solutions for such landlords will prove key for intermediaries when it comes to maximising these opportunities.
If you would like to know more about our extensive portfolio landlord offering, then speak to our team today.
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