Buy-to-let remortgages were one of the fastest growing sectors in the property finance market in 2016, second only to lifetime products, a study has revealed.
The research, published by the Equity Release Council, records the most recent market trends in property finance.
It found that the buy-to-let remortgage sector grew by 16 per cent – its highest recorded growth in the last three years.
This was trumped only by the equity release sector, which recorded a staggering 22 per cent increase, totalling 27,534 individual deals.
The trade body’s Equity Release Market Report also found:
- 16 per cent growth in the residential remortgaging sector
- Eight per cent growth in the first-time buyer mortgage sector
- Two per cent decrease in the home move mortgage sector
- 13 per cent decrease in the buy-to-let purchase mortgage sector
Commenting on the report, Paul Smee, director general of the Council of Mortgage Lenders, said: “Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests, and the introduction of tax changes in April.”
Paul Smith, chief executive of Haart Estate Agents, added: “Remortgage activity surged on the month and the year, as we are seeing more and more parents on the ground looking to release equity in their homes, to support increasing numbers of young people who are leaning on their parents for support to get onto the property ladder.”