The number of landlords remortgaging their buy-to-let properties is on the rise, new figures from Haart have revealed.
There has been a fourfold increase in the number of buy to let remortgaging applications from 1.3 per cent in March to 5.3 per cent in April, said the lettings agent, meaning that remortgage rates have risen to their highest level so far for 2012.
According to the company, a large part of this boom in remortgaging comes from landlords who are looking to reinvest in new properties in order to take advantage of the current surge in demand for rented accommodation.
Haart also noted an increase in the number of first-time landlords looking to remortgage in order to have the capital to buy new assets whilst at the same time rent out their current property.
David Miles, managing director of Haart Financial Services, said: "Our latest figures show that experienced landlords are happy to continue to invest in property by expanding their portfolios to meet the high tenant demand in many areas of the country.
"Whilst lending criteria understandably remains risk averse, there are still many great opportunities for landlords to maximise their yields from all sorts of property across the country, and my feeling is that our buy-to-let lending will continue to grow during 2012."
However, landlords who choose to invest in new properties need to make sure they are not overstretched financially or in terms of their ability to manage their growing portfolio.
One way to do this is by taking out landlord emergency insurance, which will ensure that a qualified tradesman is supplied to promptly deal with any emergency repairs, be it a boiler breakdown or a burst pipe.
This can be particularly useful for landlords who may have a large number of properties in different areas that they may not always be on hand to attend at short notice.
Posted by Megan Statham