Landlords remortgage to capitalise on flat property prices and high tenant demand
Buy to let specialist, Mortgages for Business, has reported a 25 per cent year-on-year increase in the number of landlords remortgaging Houses in Multiple Occupation (HMOs). Meanwhile remortgage activity on Multi Unit Freehold Blocks (MUFBS) has also increased from 76 per cent in Q4 2011 to 78 per cent for the same period last year.
Landlords are understandably attracted by rising gross yields; vanilla buy to let gross yields have shown a marginal increase over the past year – from 6.1 per cent to 6.4 per cent – while gross yields on complex property such as MUFBs and HMOs were also up by 0.9 per cent and 1.0 per cent respectively.
David Whittaker is the Managing Director of Mortgages for Business:
"Gross yields on buy to let property are particularly attractive at the moment thanks to the mess which the first time buyer market finds itself in. Property prices are flat and tenant demand is stratospherically high, which is why more landlords are refinancing and manoeuvring themselves into a position to add to their portfolios."
If you are a landlord looking to remortgage to expand your property portfolio Goldsmith Williams can help on all fronts. Unlike some other solicitors we do not charge extra for buy to let remortgaging or conveyancing and our fees start from just £299.
Content correct at time of publication