Buy-to-let remortgaging declines

Date:Friday 12th February 2010
Author: Susanna Kavka

The number of landlords who are remortgaging their properties declined in the final quarter of last year, Paragon Mortgages has revealed.

Statistics uncovered by the company's Financial Adviser Confidence Tracker (FACT) Index revealed that 30 per cent of landlords obtained a buy-to-let product from a financial advisor in the final quarter of last year.

This figure is a fall on the 39 per cent that were doing so during the previous quarter and represents the fourth quarterly decrease and the lowest proportion in a quarter since 2006.

John Heron, Paragon Mortgages' managing director, said: "At the moment, in the majority of cases the landlord's reversion rate is typically better than anything they can secure in the mortgage market, so there is little incentive to switch."

Last month, Paragon Mortgages found that ten per cent of landlords questioned planned to purchase a property during the first quarter of 2010, with terraced houses being named the most desirable property for them to invest in.