Buy to Let Remortgage Figures Show Landlords Are Still Investing

09 November 2012 Categories: News

Buy to Let Remortgage Figures Show Landlords Are Still Investing

The number of property valuations for buy to let remortgages has risen by 11% when compared to the figures for October 2011, according to the latest Housing Market Activity Report from Connells Survey and Valuation. It seems that continued high rental yields and competitive interest rates are encouraging landlords to invest further in the buy to let market, and a growing number are using the equity they have in their existing rental properties to cover new deposit payments.

New buy to let mortgage valuations are also up when compared to last year however only by a modest 6%. Corporate services director of Connells, John Bagshaw, commented, “At present buy to let landlords with low loan to values are taking advantage of favourable interest rates available to refinance or expand their portfolios,” .

Added to this are the favourable rental yields being experienced by many private landlords, and especially as they increased again during Q3 of this year. The average rental yield now stands at 6.7%, up from 6.2% in Q2, according to Paragon Mortgages, a buy to let specialist.

“The average yield landlords have generated in Q3 is very good, and remains around the level we have seen for the past 12 months,” said John Heron, Managing Director of Paragon Mortgages.

“Landlords will also be carefully considering the potential for house price appreciation and the outlook for tenant demand and rent levels.”