According to Paragon Mortgages fewer landlords are employing the services of a financial advisor in order to remortgage. In the last three months of 2009 only 30% of landlords used this particular service, a drop of nine percent from the previous three months figure.
Mainly this is down to an overall reduction in people remortgaging at all. Those who know at Paragon are predicting that this is a trend that will continue for a simple reason. The reversion rate is often, at the moment, more beneficial than the any of the rates available on the few remortgage packages open to landlords.
Until there is some signs of life in the area of buy to let lending very few landlord’s are going to be motivated to take the time. There is a desperate need for fresh and competitive loan options to be available to landlords.
As I stated last week there are some hopeful signs with those landlords with great credit histories looking to expand already successful portfolios being offered some excellent products. That is not enough to ensure the the sector will reach its full potential though.There needs to be a rapid expansion of the types of deals being offered all landlords including those that wish to get involved in this business for the first time.
We have discussed on here before the important role the BTL sector is going to play in ensuring that their is adequate housing for the population over the next few years. The banks need to acknowledge that and get on board.
