Take action now – review your buy to let remortgage
Wednesday 17 May, 2023
Call our Thomas Oliver mortgage advisers on 01707 872000 if your buy to let remortgage deal expires soon.
Our mortgage broking team offer expert buy to let mortgage advice and will work with you to source competitive deals currently available.
Commercial mortgage rates have fallen already in 2023
Although mortgage rates remain relatively high compared to pre 2022 levels, mortgage rates have fallen this year, but we recommend you act now to secure a mortgage deal. Remember that most mortgage lenders will honour your new mortgage deal for up to six months, so you are protected if mortgage rates increase again before your mortgage deal renews.
Why should you source a remortgage deal now?
It is impossible to know what will happen to buy to let rates over the next six months, but if commercial mortgage rates keep falling you could reapply for a cheaper mortgage deal just before you remortgage. By acting now and sorting a mortgage deal for September 2023, you will have more options available to choose from in the summer.
An improving situation for buy to let landlords?
Back in October 2022 interest rates were increasing and products were being withdrawn because of the difficult economic situation. The recent shift has seen an increasing number of mortgage products available and improving rates have been welcome. Although we are unlikely to see a return to the very low interest rate environment pre 2022 there are improving signs for commercial landlords. At their peak in November 2022 the average fixed rate buy to let mortgage was over 6.7% according to Moneyfacts data. At the start of February 2023, it had fallen to 5.91%
What will happen to interest rates in 2023?
It is impossible to know if mortgage rates for buy to let investors will continue to fall during 2023. Financial markets have been volatile again this week as regulators closed the medium-sized California based Silicon Valley Bank. We don’t yet know how this will affect the financial markets, as it might encourage central banks to raise interest rates in smaller increments or pause interest rate increases. However, it is likely that markets will remain volatile in the short-term but as major banks have more capital at their disposal and are better funded than in 2008 it is unlikely, we will see a situation similar to the 2008 banking crisis.
Burcu Kaya, Mortgage Adviser in Enfield Town, North London said:
‘It is impossible to know what will happen to the mortgage market for buy to let landlords going forward. The mortgage lenders’ rates normally reflect the Bank of England base rate, but the fall in buy to let mortgage rates shows lenders are currently moving in the opposite direction, and it demonstrates that some confidence has returned to the mortgage market.
We are seeing some mortgage lenders competing very hard against each other and offering other incentives, such as a free valuation or reduced fees. We don’t know if this situation will continue into summer, especially as we’re currently experiencing market volatility in the financial sector. For this reason, we are discussing the option of remortgaging early with all our buy to let investors.
It only takes a few minutes for you to discuss your remortgage requirements with one of our mortgage broking team. We can then review the right mortgage options for you as we have access to the mortgage lenders products. We can complete the necessary paperwork and then just wait and see what happens to mortgage rates. If as we hope the financial situation continues to improve and we begin to see more attractive remortgage deals issued by lenders, we can just source another deal before your remortgage deal ends. It is a very simple process and as our mortgage broking team are sourcing the deal and completing the paperwork you don’t need to be involved.
Call us now on 01707 872000 for more information. We offer remortgage deals for commercial lenders in London and the southeast. We have dedicated mortgage advisers working with buy to let investors in Essex, North London, Central London, Hertfordshire, and Bedfordshire.
In Summary…
Don’t wait for your mortgage deal to end before organising a remortgage deal for your commercial property. Contact your dedicated Thomas Oliver mortgage broker for personalised buy to let mortgage advice.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
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