The race is on for landlords, as a record number of remortgage searches have been made ahead of regulatory changes.
With the Renters’ Rights Bill and new Stamp Duty rules prompting many landlords to restructure portfolios, mortgage search service Twenty7tec has reported the busiest day on record for BTL mortgage searches.
Although the information was only released over the weekend the activity was on March 18: it reached double the volume of the previous day, with the surge contributing to one of the highest seven-day totals ever recorded for BTL activity.
While recent changes to Stamp Duty Land Tax (SDLT) – including the reduction of the general nil-rate threshold to £125,000 – are prompting some investors to re-evaluate their long-term strategies, the service claims that the spike in search activity is actually linked to landlords remortgaging to future-proof portfolios ahead of regulatory shifts.
This is reflected in Twenty7tec’s data, which shows a 22.9% month-on-month rise in buy-to-let mortgage searches in the £150,000 to £250,000 bracket – significantly higher than the 6.4% growth in residential searches.
A spokesperson for Twenty7tec says: “As new changes appear on the horizon, we are noticing that landlords are acting more decisively when it comes to their next steps, and we’re seeing a significant increase in buy-to-let remortgages as property investors look to future-proof their portfolios.
“The spike in searches for properties between £150,000 and £250,000 is particularly telling. That price band is seeing the greatest change in activity, and it’s BTL, not residential, that’s driving it.
“In addition to this, we are seeing record levels of products available, with 25,218 total products by the end of March. This is 128 more than February – up 0.51%.
“There’s more choice than ever for buy-to-let landlords, but with external pressures mounting, the next few months will be telling as to whether landlords stay the course, adapt their strategies – or begin to exit the market altogether.”
This article is taken from Landlord Today