According to research from the BVA BDRC, which surveyed 753 consumer and portfolio landlords, around 30 per cent want to remortgage in the next 12 months, and within that a third are doing so to release equity from their portfolios.
Portfolio landlords, those who have four or more buy to let (BTL) mortgages, are twice as likely to want to remortgage in the next 12 months against consumer landlords, with 43 per cent planning to do so.
Foundation Home Loans suggested that this released equity would probably be invested in further purchases and noted that portfolio landlords were more optimistic about the lettings market than other landlords.
Average portfolio values in the second quarter this year came to £2.04m, and the first time it has gone above £2m since the third quarter of last year.
Foundation Homes Loan’s commercial director George Gee (pictured) said double-digit house price growth over the past year had consequently heightened the desire to remortgage.
He said: “It means advisers are likely to see a growing spike in BTL remortgage advice demand, and the positive news is there are very competitive product options for all types of portfolio landlords at present.”
Gee added that the lender was working on its portfolio landlord offering, examining price and upfront costs.
He added: “Portfolio landlords are likely to grow in number in the months and years ahead, and as specialist lenders in this space, we will continue to develop the product options and flexible criteria to help them get the most out of their existing properties to expand their letting footprint.”