According to the latest findings from Mortgage Trust, buy-to-let intermediaries are confident that remortgaging will expand in the next three months.
Mortgage Trust's April 2005 Buy-to-Let Intermediary Forecast reveals that the buy-to-let experts are expecting the proportion of remortgage business to grow to 43 per cent in April - compared with 40 per cent in March.
The increasing popularity of remortgaging for buy-to-let investors contrasts with their apparent reluctance to take advantage of the higher loan to value (LTV) ratios offered by certain lenders.
The forecast reveals that 63 per cent of landlords are finding no use for the increased LTV limits, preferring to keep their borrowing to 85 per cent or less of the property value.
"Buy-to-let landlords operating in today's market are cautious investors who believe in responsible borrowing," comments Nicola Severn, marketing manager at Mortgage Trust.
"For the first time we have seen the proportion of business expected from remortgaging exceed that expected from loans to experienced investors adding to portfolios."
More than half the buy-to-let intermediaries questioned for the forecast said they believed interest rates would remain at 4.75 per cent this month.Click here to find out more about buy-to-let mortgages.
© DeHavilland Information Services plc