“Again, this presents a strong opportunity as it doesn’t just bring the remortgage into ‘play’ but clearly the opportunity to talk to existing landlord borrowers about any other product/service wants and needs they might have.”
Meanwhile, the average landlord borrower now owes £665,000, which equates to approximately £125,000 per buy-to-let mortgage. Borrowing varies significantly, ranging from £268,000 for non-portfolio landlords — those with one to three buy-to-let mortgages — to £1.16 million for portfolio landlords. Notably, one in five landlords owes more than £1 million.
Foundation Home Loans noted that the volume of mortgages coming up for remortgage, along with the amounts owed, presents a significant opportunity for mortgage advisers to offer competitive refinancing solutions and earn substantial procuration fees.
The report also identified a continued preference among landlords for limited company ownership, especially for new purchases, with 67% of new acquisitions now held within a company structure.
Additionally, 10% of landlords intend to increase their portfolios in the next 12 months, with 67% planning to use a buy-to-let mortgage, 31% to release equity from existing properties, and 29% to purchase outright. Smaller percentages will use commercial loans or funds drawn from pension pots.