Much like a traditional homeowner remortgage, a buy to let remortgage means moving your mortgage across from one product to another. Either with the same lender or a with new one to get a better financial deal.
Remortgaging can help to save money and manage changes to your mortgage.
But are there differences when it comes to a buy to let remortgage?
And what do you need to consider as a landlord?
What is a buy to let remortgage for?
As a landlord, remortgaging your buy to let property can help you to reduce costs and improve the return on your investment.
Rates may have changed significantly since you took out your last mortgage on the property. And if you’re coming to the end of a fixed term deal then remortgaging can save you a significant amount versus dropping on to your providers Standard Variable Rate (SVR).
Are there tax benefits to remortgaging?
Tax relief on buy-to-let mortgages has been slowly decreasing since 2017. Landlords are now unable to deduct mortgage interest as an expense from their rental income.
By remortgaging you may be able to benefit from better rates that could help you to offset these changes.
Can you borrow against a buy to let mortgage?
Yes, depending on your circumstances, remortgaging your buy to let property could offer a way to generate the funds needed for a deposit on another property to grow your portfolio.
You could borrow more to add an extension, convert a loft, or update kitchens and bathrooms. Deals can be more favourable if you’re looking to increase the value of the property and potentially earn a higher rental income.
Or you may be able to release equity to consolidate debts or to buy a partner out and change the ownership of the property.
How can I get the best buy to let remortgage rates?
There’ll be differences in the products and rates you’re offered based on what you are remortgaging for.
Those simply wanting to switch for better rates at the end of a deal will be treated differently to those wishing to borrow more for investments for example.
Buy to let remortgages are also subject to a “stress test” to check affordability. Most lenders require you to cover not only the mortgage repayments, but other costs too. So checking that you can cover up to 145% of the monthly repayments and allowing for future interest rate changes is quite normal.
If you’re looking to remortgage your buy to let property then we’ll help you to navigate the best rates and deals.
Call our freephone mortgage advice line on 0333 005 0333. And in a 15-minute discovery call we’ll evaluate your individual circumstances and offer you helpful financial advice.
Your home may be repossessed if you do not keep up your mortgage repayments.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.
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