Buy-to-let remortgaging activity falls during Q1 2010

A fall in buy-to-let remortgaging activity was witnessed during the first quarter of 2010, it has been reported.

Paragon's Financial Adviser Confidence Tracking Index indicates that the proportion of buy-to-let remortgage business handled by brokers fell to its lowest level for five years.

Remortgaging is reported to have accounted for 28 per cent of buy-to-let business during the period, down from 30 per cent in the final quarter of 2009.

This represented the fifth consecutive quarterly fall and the lowest level since the first quarter of 2005.

John Heron, Paragon Mortgages' managing director, said there is little incentive for landlords to move from their existing lender, and even if they wanted to, there is a serious lack of buy-to-let mortgage products available.

"The low interest rate environment means that most landlords with a mortgage are financially better off staying on their reversionary rate with their existing lender rather than remortgaging to another lender."

Last week, research conducted by Kensington indicated that the majority of Brits currently renting a property do not expect to buy a home in the near future.

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2010-06-14 08:32:09 © Moneyextra.com