Remortgage volumes fall
The level of remortgage business has now halved since pre-crisis levels.
The number of buy-to-let remortgage cases have also declined from 34% in Q4 2014 to 29% in Q2 2015. This has reversed the increase experienced six months ago but mirrors the 4% decline experienced in Q2 2014.
The lender’s latest Financial Adviser Confidence Tracking Index survey also shows that getting a better interest rate (45%) and capital raising (44%) were the top reasons for obtaining a buy-to-let mortgage in Q2 – a trend which remains from the previous quarter.
However, the overall mortgage market remains stable with intermediaries reporting a small rise in new business from 22.6 to 22.7 cases in the second quarter. More than four out of 10 intermediaries (46%) expect to do more mortgage business in the next 12 months.
John Heron, managing director of Paragon Mortgages, said: “As ever, it is important to identify trends and gain an understanding of the market from intermediaries’ perspective as they are working with landlord clients on a daily basis, helping us to ensure our products are as relative to market conditions as possible for our customers.
“Although it is disappointing to see a drop in the number of remortgages, it is important to note these are incremental fluctuations and, as whole, when viewed from a broader perspective, the figures remain well within the average range.”