Fall in buy-to-let remortgaging recorded

Buy-to-let remortgaging activity continued to decline during the final quarter of 2009, it has been reported.

According to research conducted by Paragon Mortgages, 30 per cent of landlords remortgaged via a financial adviser between October and December, down from 39 per cent in the third quarter.

This represented the fourth successive quarterly decrease and the lowest proportion since the third quarter of 2006.

John Heron, Paragon Mortgages' managing director, said buy-to-let remortgaging activity was likely to remain low until competition starts to increase.

"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," he noted.

Last week, the Bank of England reported a slight dip in the number of mortgage approvals across all sectors during December 2009.

Some 59,023 mortgages were agreed during the final month of the year, down from 60,045 in November.

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2010-02-11 14:11:38 © Moneyextra.com