View from the ground: What our BDMs are seeing in the BTL remortgage market
We asked two of our regional BDMs to take a look at the type of remortgage deals they have been working on in their area and identify any trends so far in the market.
Rhys Evans - BDM for South London, South Essex and Kent
So far this year I’ve seen Investors turn away from readily lettable assets due to a lack of immediate supply and are instead looking to find ways to add value to either less lettable assets, or by improving properties in their portfolio.
This coincides with the government's push for green assets, therefore landlords are looking to improve the EPC’s to meet these standards and also to qualify for discounted rates.
We have seen a lot of demand for day one remortgages as investors wish to pull out profits to reinvest towards their next project.
Remortgages on short-term lending have also increased as investors are looking to snap up the buying opportunities while they can due to the increased competition. While a post-Covid realignment of where everyone lives and works hasn’t quite materialised as widely as was expected, we’ve still seen soaring demand for houses and family homes.
Perhaps the biggest trend however has been an increase of landlords taking a safer approach and fixing in for a longer than usual period due to the uncertainty of the post covid/brexit economy moving forward.
Overall the mood in the remortgage market - and wider Buy-to-Let market - so far has been pointing towards finding this stability in uncertain times. So whether it is releasing profits to improve existing portfolio stock or remortgaging onto longer-term fixes, securing properties and profitability for the long term is on the top of the agenda.
Tatyana Stefanova - BDM for Scotland
In Scotland I’ve seen roughly a 10% increase in the remortgage enquiries, alongside a similar level of increase in the quotes using longer, fixed-term products and company applications.
When it comes to remortgaging, the ultimate goal for a broker is to get a lower initial cost for their client, especially in portfolio cases.
This relates to the fees and then initial rate they would be looking to pay. Depending on where the landlord is with their portfolio - consolidating or growing, for example - they may be on the lookout for a short or a longer-term mortgage, but a low initial rate is still important.
Also in any remortgage deal now landlords need to consider the upcoming deadlines for improved energy efficiency in their properties. The desire to fund upcoming refurbishments might mean more remortgages are looking at equity releases where they want the funds to make the necessary improvements, either in the one property they are remortgaging or for more properties across the portfolio.
We’re covering all of those areas through our EPiC range, £150 valuation fees and portfolio underwrites made simpler with Open Banking.
This saves on the initial cost of valuing the property, the rate they have to pay and how quickly the deal can be delivered. With an increased in Limited Company transactions as well, our ILA Waiver also reduces costs for the remortgaging landlord.