This figure has risen consistently over the last three years, showing a 25% increase in the number of people considering remortgaging since 2002. This is reflected in data from the Council of Mortgage Lenders (CML) which reveals that remortgages now form almost half (48%) of all mortgage loans totalling approximately £9,300 million pounds, compared to £5,400 million in 2002.
The survey also revealed that 80% of property investors would use additional funds gained through re-mortgaging to reinvest in additional property, emphasising the confidence the majority of investors still hold in the long-term gains of the buy-to-let market, despite negative reports and forecasts from some commentators. Another recent survey from the Property Investor and Homebuyer Show North revealed that 84.9% are still relying on their property portfolio or home to provide them with future wealth.
Nick Clark, Managing Director of the Property Investor and Homebuyer Show North, comments: “Property investors always want to see their money working hard for them and are now more willing than ever to shop around to negotiate the best deal possible for their mortgage. With interest rates historically low and likely to decrease further in the next few months, we are expecting to see many more homeowners and property investors remortgaging to take advantage of competitive deals.”
Lee Grandin, Managing Director of Landlord Mortgages, comments: “There has been a visible surge in remortgaging over the last few years. Recently we have seen many buy-to-let investors opting for lifetime trackers as they are at their lowest rates above the base rate. One product we offer is only 0.64% over the Bank of England base rate for the life of the mortgage. The other popular option is three-year fixed rates under 5%; these suit investors as they offer some stability, but don't tie them in for too long if rates do come down.”
**The Property Investor and Homebuyer Show North (24 to 26 June, G-Mex, Manchester) will feature a number of exhibitors and seminars providing expert advice and information on all aspects of homebuying and property investment, in the north, across the UK and overseas.
