Remortgaging expected to play major part in buy-to-let business

12 April 2005
A significant proportion of buy-to-let intermediaries believe that remortgaging will have an important role in their business over the next three months, research suggests.

The Mortgage Trust's March 2005 Buy-to-let Intermediary Forecast reveals an increase in the number of intermediaries placing their confidence in remortgaging, reaching 40 per cent in March from February's 38 per cent level.

The forecast also found a generalised feeling of optimism amongst the buy-to-let specialists, with just ten per cent expressing the opinion that house prices would soon fall - compared with 28 per cent in December 2004.

"Intermediaries are clearly still optimistic about the buy-to-let market," said Nicola Severn, managing director of the Mortgage Trust.

"The expectation of an increase in remortgage levels reflects the professional attitude among investors who not only want to protect themselves against any potential increase in interest rates, but who are also keen to take advantage of the attractive offers currently available in the market place."

Just eight per cent of the intermediaries interviewed expected rents to fall, and many of them have positive feelings towards the changes in stamp duty unveiled in this year's Budget.

Ms Severn added: "Intermediaries are sanguine about the outlook for the housing market and for rental levels, and changes in stamp duty are also contributing to their generally positive view."

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