Rush as buy-to-let borrowers try to close mortgage deals

There has been a rush of activity in the buy-to-let mortgage sector.

Connells Survey & Valuation reports that last month it carried out 34% more buy-to-let valuations than in February last year, and 25% more than in January.

Remortgaging volumes, including buy-to-let remortgaging, also jumped, up 41% on the year, and up 6% on a monthly basis.

The imposition of a 3% Stamp Duty surcharge on purchasers of second homes, including buy-to-let properties, is now little more than three weeks away.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Buy-to-let investors and those remortgaging with the aim of buying a second home are racing against the clock.

“Expect this activity to reach a crescendo in March before calming in the second quarter of the year.

“Buy-to-let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so.”

Connells also report increased valuation activity for both home mover and first-time buyer sectors – up 35% and 36% respectively on a monthly basis, and 8% and 9% annually.

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One Comment

  1. Jacqueline Emmerson

    I would agree, our conveyancers are rushed off their pins. All new matters from last week we advised that we would be highly unlikely to complete by the deadline. On another note we are being approached by buyers and sellers of portfolios. As I suspected would happen investors are buying and selling to each other. There is no sign yet of first time buyers benefitting. The richer investors will benefit at the expense of landlords with mortgages. All in all a great deal for us lawyers and you estate agents. And of course the government’s stamp duty and land registry coffers. Maybe that’s what this is really all about, never mind the first time buyer. You couldn’t make it up!

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