Buy-To-Let Purchases Will Outstrip Remortgages In Q1 2016
More purchasers than remortgagors are expected to apply for buy-to-let mortgages in the first quarter of 2016.
This would be a reversal of the trend in 2015, when buy-to-let remortgage transactions outstripped purchasers by more than 2:1. Many are predicting a buy-to-let ‘boom and bust’ before the 3% stamp duty surcharge comes into force in April 1 2016. The results aren’t surprising as for some time now landlords have been making considerable savings through remortgaging. Many have also been releasing equity to make improvements and plan further purchases.
It is expected that we will see a reversal of this trend in the first quarter of this year as landlords hurry to expand their portfolios before the stamp duty surcharge kicks in on 1 April. The number of enquiries for purchase finance is already well ahead of where we were this time last year, particularly from those looking to sell their personally owned property into a corporate vehicle.