Buy-to-let mortgage brokers will switch their attention to the remortgage of five-year deals written in 2016 after the Stamp Duty holiday ends at the end of March, Paragon Bank research has found.
Half of brokers that deal in buy-to-let said that they will focus on five-year remortgage business when the Stamp Duty holiday ends. The number of five-year fixed rate buy-to-let mortgages increased significantly in the run-up to the introduction of the buy-to-let Stamp Duty surcharge in April 2016. Industry data shows that the number of five-year fixed buy-to-let completed in the six months to the end of March 2016 was 121% higher than the same period in 2015.
The introduction of new buy-to-let underwriting rules in 2017 provided further stimulus to the five-year fixed market, with this length of deal continuing to grow in popularity since.
Moray Hulme, Paragon director for Mortgage Sales, said: “Brokers are extremely busy getting deals over the line ahead of the end of the Stamp Duty holiday, but the prospect of remortgage business will give them some hope that they won’t face a complete cliff edge of business as we head into April.”