Take-up of buy-to-let mortgages slowed in June as economic and political uncertainty caused some buy-to-let investors to adopt a ‘wait and see’ approach.
There were 5,300 new buy-to-let home purchase mortgages completed, 3.6% down on the same period last year, while buy-to-let remortgaging dropped by 0.8%.
This was fuelled in part by a marginal fall in the number of fixed-rate mortgages coming to an end and the growing popularity of product transfers, according to the latest data from trade body UK Finance.
Richard Pike, sales and marketing director at Phoebus Software, said: “Given that the country has been in a state of flux for over three years it is hardly surprising that the figures year-on-year have dipped across the mortgage market sectors.
“When you consider that the mortgages in these June figures were more than likely for applications made in or around the original time we should have been leaving the EU, it is more surprising that the figures weren’t even lower.
“The buy-to-let figures are a concern, but as the next deadline for Brexit nears, there may be some light at the end of the tunnel. One way or another we will have a resolution and, despite the government’s best efforts to curb buy-to-let, a resolution should mean that investors that have been holding fire will know whether or not investing in property is once again a viable proposition.
“We may be a nation of homeowners but, when buying a home is so expensive, the need for rental accommodation remains as important as ever.”
David Copland, director of mortgage services at TMA, thinks that the second half of the year could prove busier for mortgage lenders as a number of deals are expected to come to the end of their terms.
He commented: “£90.2bn worth of residential mortgages and almost £8.3bn worth of buy-to-let deals will come to the end of their terms between June and October this year,” said Copland.
“This represents a huge opportunity for advisers to talk to their customers about remortgaging, and to help them lock in the best deals available to them.”
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