There is likely to be a huge surge in buy-to-let landlords switching onto new mortgages when their rates expire this year.
According to figures from data firm CACI published in Mortgage Solutions magazine, more than £13bn worth of buy-to-let mortgages are set to expire in the first six months of 2018. A further £11.4bn of buy-to-let maturities will expire in the second half of the year.
The high number of buy-to-let mortgages potentially reverting on to expensive standard variable rates is largely due to the stamp duty surcharge for landlords in early 2016. The tax increase led to a spike in activity and £40.6bn* of buy-to-let lending as mortgages were pushed through to beat the stamp duty rise.
Aaron Strutt, product director at Trinity Financial, told The Daily Telegraph: “Historically a lot of landlords have taken out two-year fixes as opposed to anything longer. The first thing they need to do is look up what product transfer rate they qualify for. A lot of lenders are pushing them, although most remain quite expensive, so it’s important to look across the market.”
*Source: Council of Mortgage Lenders
Call Trinity Financial on 020 7016 0790 to secure a new buy-to-let mortgage rate