According to Mortgages for Business, an increasing number of landlords are remortgaging ‘more complex’ buy-to-let property.

The specialist mortgage broker says that their definition of ‘complex’ properties relates to Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB), i.e. a mixture of retail units, offices and flats.

In the last 12 months, the proportion of landlords refinancing HMOs has jumped from 55%, while remortgaging on MUFBs has increased from 76% to 78% year on year.
In particular, it seems many investor-landlords have been remortgaging lower-value HMO property.

David Whittaker, managing director of Mortgages for Business, said: “Gross yields on buy-to-let property are particularly attractive at the moment thanks to the mess which the first-time buyer market finds itself in.

“Property prices are flat and tenant demand is high, which is why more landlords are refinancing into a position to add property to their portfolios.

“While high demand and subdued property prices are the carrot, certain lenders are the stick, particularly RBS and the Irish lenders who are demanding that landlords refinance elsewhere as these lenders look to reduce their exposure to property.”

The number of BTL lenders has recently risen from 25 to 26, with the arrival of InterBay Commercial. However Whitaker also stated that the number of BTL mortgage products available has now dipped.