Your Business and Industry
Taking advantage of the BTL remortgage opportunity
While we have seen rates come down from their 2023 highs, a large number of landlords are coming to the end of their current deals throughout 2024 and these landlords are looking for a range of solutions to keep down any increases in mortgage costs experienced.
This activity was evident in the Q1 2024 Pegasus Insight Landlord Trends research report which showed that four in 10 landlords are likely to remortgage or opt for a product transfer this year. Within this, 49% said they had one mortgage to refinance, 24% had two, 11% had three, 7% had four, while 9% said they had over five mortgages due for refinance in the next 12 months.
When asked how they had arranged their most recent buy-to-let mortgage, 68% said they had done so via a mortgage adviser – this was higher at 72% for those with over four buy-to-let mortgages – while 26% had arranged it directly with a lender, 3% had done so via an online broker or a robo-advice platform, while 1% had used a comparison website.
In terms of how they intended to fund any future purchase, multiple answers were allowed, with 48% responding that they would use a buy-to-let mortgage, 38% said they would purchase it outright, 38% would release equity from existing properties, while 15% said they would use funds drawn down from a pension pot.
Faced with the question of whether they had a rate preference, a slight majority of respondents suggested a two-year fix, while close to a third said they didn’t know at this stage or would take advice closer to the time.
This data presents a real opportunity for advisers in the buy-to-let space, not least because a significant minority are still opting to go direct to their lender, rather than review what is available across the entire market. Plus, a number clearly still think they are getting ‘advice’ in doing this, rather than simply choosing from a pre-selected array of lender-provided product options.
Of course, the PT offer might well be the most suitable for the landlord at that time, but there are clear benefits in taking advice from a professional, independent adviser, especially given we are operating in such a competitive market and there may be other more suitable, cheaper product options available to them.
Take a look at our BTL calculator
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