Paragon Bank, the specialist lender, has forecast a boom of remortgaging activity in the buy-to-let sector next year.
The catalyst behind this is the new underwriting standards that were brought in by the PRA in 2017. The lender will be well placed to manage the increasing numbers of borrowers with five-year fixed rates, who now wish to switch to longer terms.
The lender also expects the industry to increase offerings that assist customers in purchasing more energy efficient properties and upgrading to improve their EPC rating, before the new rules on EPCs come into force in 2025.
Moray Hulme, mortgage sales director at Paragon Bank, said: “Five years ago, the PRA introduced new underwriting standards that required lenders to take a more holistic approach to assessing mortgage affordability.
“This correlates with 2017 seeing a significant increase in the volume of mortgages fixed over five years. As a result, we’re anticipating strong levels of remortgage business throughout the next year.
“This presents a fantastic opportunity for brokers to generate business and, with the process often involving additional borrowing, we recommend that they do this at the earliest opportunity.
“The sector has shone during another incredible year and with 2022 shaping up to be equally eventful, we look forward to working with our industry partners to support landlords in providing good quality, affordable homes for millions of tenants in the UK.”
Original article featured here…
Last month, Paragon reduced rates on selected 75% and 80% LTV five-year fixed rate buy-to-let products. The lender’s green mortgage five-year fixed rate, at 80% LTV, has been reduced from 3.99% to 3.85%. The standard five-year fix at 80% LTV is now down from 4.09% to 3.95%.