Buy-to-let landlords are rushing to remortgage as record low rates look increasingly attractive, fresh data shows.
In July, remortgaging accounted for more than 70% of all buy-to-let lending in July after reaching an eight-year high in terms of volume, with the rest being new mortgages for purchase purposes, according to the figures from UK Finance.
Buy-to-let lending totalled £3.2bn with a total of 20,500 mortgages, a marginal increase from last year.
The data also revealed that remortgaging by homeowners totaled £6.7bn which equated to 36,800 remortgagors, an annual increase of 12% and 10% respectively.
June Deasy, head of mortgages policy at UK Finance, commented: “Remortgaging strengthened in July and reached its highest level since January, with customers attracted by borrowing rates that are at or close to their historic low point.
“The increase in activity in July means that, over the last year, the number of people remortgaging has been at its highest since 2009.”
“Lending for house purchase was lower in July than in the preceding month, and we expect the market to continue to soften a little in the coming months.”