Landlords adopt strategies to manage higher costs – research
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To further reduce expenses, 17% of landlords are now managing properties on their own, moving away from professional letting agents, with 8% completely switching to self-management.
Over 40% of landlords intend to remortgage or opt for a product transfer within the year. This includes 49% who need to refinance one mortgage, while a smaller portion, 9%, indicated they have more than five mortgages due for refinancing.
Almost seven in 10 landlords (68%) have arranged their latest mortgages through advisers, particularly those managing larger portfolios. This compares to 26% who dealt directly with lenders, 3% who used online brokers or robo-advisers, and 1% who employed comparison websites.
For future acquisitions, 48% of landlords plan to use buy-to-let mortgages, 38% will buy outright, and another 38% will release equity from existing properties. Additionally, 15% intend to draw from pension funds.
“Understandably, landlords have been using all options at their disposal when it comes to mitigating the increase in mortgage costs they have seen as a result of higher rates,” said Grant Hendry (pictured), director of sales at Foundation Home Loans. “There is clearly a ‘needs must’ approach to dealing with this issue.
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