One in three leveraged landlords plan to remortgage over the next 12 months providing advisers with an opportunity to secure refinancing for their buy-to-let clients to help them add to portfolios throughout 2022.
That is the result of the latest BVA BDRC landlord survey conducted on behalf of Foundation Home Loans. Of those leveraged landlords who plan to remortgage in 2022, over half (55%) suggest they are likely to opt for a five-year fixed-rate mortgage, with 14% saying they will secure a two-year fix, and 8% a three-year fixed deal.
The proportion of those who expect to purchase by releasing equity from properties within their portfolio increased in quarter four last year, up 8% to 24%, suggesting landlords will continue to seek to tap into any capital gains they have secured as a result of house value increases over the past two years. Encouragingly, 70% of all landlords said they would use an adviser to secure a buy-to-let mortgage on their next purchase, while 67% said the same for an existing mortgage renewal.
Looking at BTL borrowing on a wider scale, almost 2 in 3 landlords fund at least part of their portfolio through BTL borrowing. The incidence of BTL mortgages has edged up slightly vs. Q3 figures (+5%), whilst outright ownership of BTL properties has remained stable. Fractional ownership and the use of commercial loans remains much less common, except for the very large portfolio landlords (20+ properties).
These figures help demonstrate the vast potential on offer throughout the BTL remortgage market. And this is especially apparent for proactive advisers who understand how lenders such as Foundation Home Loans can deliver the type of solutions and support to help their clients make the most of some favourable lending conditions.
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