Remortgaging activity is finishing the year strongly, increasing on both a monthly and annual basis as homeowners look to lock into competitive rates as rumours of a potential Bank of England base rate rise grow louder as we approach 2016. But it is not just remortgaging activity on the up, with second charge mortgage transaction levels also continuing to increase according to the Enterprise Finance Secured Loan Index. With the EU Mortgage Credit Directive implementation in March edging nearer, second charge mortgages will soon be regulated in the same manner as first charges, and it would appear that more intermediaries are waking up to the potential of the products. If homeowners are looking to raise capital, second charge mortgages should always be considered alongside remortgages or further advances.
Buy-to-let activity also continues to improve, but this is very much the relative calm before the storm given the rush expected in the spring of 2016 as property investors look to expand their portfolios before the hefty new Stamp Duty charges for landlords come into effect.
Danny Waters is Chief Executive Officer of Enterprise Finance