blog mortgage118

Tag: refinance

  • Majority of Landlords Plan to Refinance This Year

    Majority of Landlords Plan to Refinance This Year

    Research from specialist lender Together reveals that a significant 76% of UK landlords are planning to refinance their property portfolios within the next year. This trend indicates a strong desire among landlords to secure funds for new investments, showcasing the resilience of the buy-to-let sector.

    TL;DR: 76% of landlords are likely to refinance their properties this year; this reflects confidence in the buy-to-let market and a push for new investments.

    Why Are Landlords Choosing to Refinance?

    With 36% of landlords stating they are “very likely” to refinance, and an additional 40% “somewhat likely,” the motivation appears to stem from the need to access capital for further investments. This trend is particularly notable as landlords look to diversify or expand their portfolios amid changing market conditions.

    How Has the Market Shifted?

    Since 2020, there has been a noticeable shift in the geographical distribution of buy-to-let lending. The North West has seen an increase of 3.3 percentage points in Together’s lending, while Scotland and Yorkshire and the Humber have also experienced growth. In contrast, Greater London and the South East have seen a decline, dropping from 23.6% to 20% of Together’s buy-to-let lending. This shift suggests a changing market in investment hotspots across the UK.

    What This Means for Landlords

    The increasing inclination to refinance indicates a robust sentiment among landlords regarding future investments. For those looking to expand their portfolios, this could be an opportune time to explore current mortgage rates and assess refinancing options. As the market evolves, landlords should remain vigilant about regional trends and adjust their strategies accordingly.

    Frequently asked questions

    What factors are driving landlords to refinance?

    Landlords are primarily motivated by the need for capital to invest in new properties or improve existing ones, reflecting confidence in the buy-to-let sector.

    How has buy-to-let lending changed in recent years?

    There has been a geographic shift, with increased lending in the North West and Scotland, while Greater London and the South East have seen declines in their share of lending.

  • Roma Completes £1.3m Buy-to-Let Refinance in Just Six Days

    Roma Completes £1.3m Buy-to-Let Refinance in Just Six Days

    Roma Finance has successfully completed a £1.3 million buy-to-let refinance within a remarkable six-day timeframe. This swift transaction was essential for the borrowers, who needed to refinance an existing development exit loan to avoid significant penalty charges.

    TL;DR: Roma Finance’s rapid £1.3m buy-to-let refinance highlights the importance of timely financing solutions for landlords; this case underscores the benefits of strong asset-backed positions and clear exit strategies.

    What was the nature of the buy-to-let refinance?

    The refinancing involved an 11-bed multi-unit freehold block in Bedford, previously a family-owned doctor’s surgery, which has been converted into residential units. Additionally, the refinancing encompassed a detached single-family home that is currently let under an assured shorthold tenancy. This consolidation of borrowing across both properties under a new buy-to-let structure allowed the borrowers to streamline their financial commitments.

    How did Roma Finance expedite the buy-to-let process?

    Roma Finance attributed the quick turnaround to the borrowers’ strong asset-backed position and moderate use, coupled with a well-defined refinance exit strategy. An automated valuation model facilitated the underwriting process, enabling Roma to deliver a solution in a time-sensitive scenario. Senior underwriter Adam Evans noted that the team’s experience and capability were important in navigating high-pressure transactions.

    What does this mean for landlords and brokers?

    This case serves as a reminder of the advantages of having a solid asset-backed position when seeking buy-to-let refinancing. For landlords, it illustrates the potential for swift financial solutions, particularly when working with lenders who understand the urgency of their needs. Brokers can take note of the importance of clear communication and thorough case preparation, as these factors significantly enhance the chances of a successful, rapid refinancing outcome.

    Frequently asked questions

    What is a buy-to-let refinance?

    A buy-to-let refinance involves replacing an existing mortgage on a rental property with a new loan, often to secure better rates or consolidate debt.

    How can I expedite my refinancing process?

    To expedite refinancing, ensure you have a strong asset-backed position, a clear exit strategy, and work with lenders who prioritize quick and efficient processing.