The Nationwide Building Society survey found that one in three people thought remortgaging meant taking out a second mortgage or increasing debt. Ten per cent could not explain what remortgaging meant, while half of those who had never remortgaged thought it would be ‘confusing’ or involve ‘hassle’.
However, the number of those who have chosen to remortgage and buy more property has increased, producing continued growth in the buy-to-let market.
Paragon Mortgages, the buy-to-let specialists, revealed in their own survey that there has been a five per cent increase in the use of remortgages to acquire a second property over the last six months (from 15 to 29 per cent). However, controlling out-goings and home improvements remained the most popular reason for remortgaging (62 per cent of respondents).
Meanwhile, a report from fellow buy-to-let specialists, UCB, showed despite continued expansion in the sector, the rate of growth has slowed dramatically. The half yearly increase in new loans fell to 5 per cent in the first half of last year, down from a 41 per cent high in the same period of 2002. The report also showed buy-to-let activity increasing in the North with 50 per cent of all buy-to-lets occurring outside of the South East.
