There is likely to be many buy to let landlords wanting to remortgage their properties towards the end of March 2018. This is because, in April 2018, it is two years since the stamp duty rose to 3% for buy to let purchases.
Many landlords purchased property in 2016 just before the April 1st deadline to avoid paying
the extra stamp duty. There were a large number of two-year fixed interest mortgages issued then which are due for renewal in March 2018. A record £4.3 billion was lent in March 2016 and 28,700 buy to let mortgages were sold.
Landlords who were provided with two-year commercial mortgages by mainstream lenders and high street banks may find that their current lender is reluctant to remortgage, or they may be charged high interest rates. Their best move is to use a mortgage broker who can assess their borrowing needs and find the most suitable commercial mortgage at good interest rates.
If a landlord owns four or more properties that are mortgaged they are classed as a portfolio landlord. Prudential Regulation Authority has issued stricter affordability rules for portfolio landlords when they apply to remortgage properties. A mortgage broker can help landlords provide proof of rent and other documents to support their remortgage applications.
Brokers are anticipating that they will deal with more requests from landlords to remortgage towards the end of March 2018, but they welcome the opportunity of both helping landlords and increasing their business.