A bright outlook for the UK BTL remortgage market

With interest rates experiencing some declines, the conditions for remortgaging are more favourable than they have been in recent times. This presents landlords with an opportunity to refinance their properties under more competitive terms, rather than simply settling for a product transfer.

This opportunity is evident in the latest Q2 2024 Landlord Trends report by Pegasus Insight for Foundation Home Loans which shows that just over one in three landlords intend to remortgage or make a product transfer within the next 12 months. On average, landlords anticipate refinancing 2.5 products. Portfolio landlords, in particular, are significantly more likely to be active, with half expecting to refinance an average of 3.1 mortgages.

Reflecting current ownership trends, three out of four properties set for refinancing will remain under personal names. Notably, landlords holding property in personal names do not plan to move these into limited companies at the point of refinancing. On average, of the 2.5 properties landlords intend to refinance, 1.7 will remain in personal names, 0.6 will be in limited companies, and the status of 0.2 will depend on circumstances at the time.

This data reflects some promising times for the UK buy-to-let remortgage market and a vibrant remortgage market that not only offers landlords a chance to secure better financial arrangements but also presents mortgage advisers with a golden opportunity to expand their client base and deepen existing relationships.

Engaging landlords in conversations about their broader financial needs during the remortgage process can lead to a more comprehensive service offering, enhancing client satisfaction, business growth, and ensuring optimal outcomes. A process which represents a win-win for everyone.

For intermediaries only