Remortgage to renovate rather than move? Or Buy to Let?

There have been a number of remortgage applications recently for those looking to raise funds to purchase other properties or to make improvements to their current homes.  Just around the local area, I have seen an amazing amount of building work and renovations / extensions being carried out.  Many home owners appear to be improving their current residence rather than taking the big leap of selling and moving up (or down) the ladder.  This appears consistent with the general view that there is a shortage of properties up for sale.

Other consumers might be making the next step, but are then renting out their current property on a Buy to Let basis rather than selling it.  Nice if you are in that lucky position!  The rental market is certainly buoyant and showing no signs of slowing down over the coming months. So a Buy to Let might provide you with a modest return for your investment and may be the start of building a little portfolio nest egg for later on life. We have noticed that this is a growing desire for many who fear that their pension arrangements may not be sufficient and that rental income may be a suitable supplement.  Many new lenders have also launched in to this sector over recent months.

Over the last week we’ve seen rate increases in the fixed rates arena as column inches increase in speculation over a bank base rate rise in November.  However, lenders are still competing for business even as we move in to the final stages of the year.  We’ve seen reductions in the Buy to Let sector and the specialist bridging/short term lending market has seen movements in both criteria and rate decreases.  There are many opportunities whatever your circumstances and lenders are willing to have a conversation in order to do the right deal.

Finally, AToM was thrilled to receive a National Mortgage Adviser Award for the Best Use of Technology last month.  Many thanks to everyone who voted for us, it really is appreciated!