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POSTED 08 June 2016 Mortgages

Remortgaging for Buy to Let Properties

Buy to let mortgages have proved incredibly popular for those looking to get on the property ladder in recent years. A more affordable option for first-time buyers and a good investment opportunity for those with the finances, they hold many benefits.

Due to a number of reasons, investors may at some point want to remortgage buy to let deals, either to fund another project or free up some equity.

Depending on a number of factors, this can either be a quick and easy process or a little bit more complicated. Plus there’s always the option to remortgage your current home to take out a buy to let one if your circumstances change.

Why Remortgage a buy-to-let property?

There are a number of reasons for wanting to remortgage buy to let property, including to:

  • Release equity to spend on other projects
  • Swap to a buy to let mortgage with better rates
  • Change the terms of the mortgage
  • Consolidate debt

Your circumstances may change whereby you need to reassess your finances and cut back a bit. A buy to let remortgage can allow for this by switching to one with lower interest rates, even if it is through using a different lender.

As well as the fact that your circumstances may have changed since the mortgage was first taken out, the lender, whether a bank, online estate agents or other financial entity, could have changed their buy to let mortgage offerings.

If there is now a more attractive option out there then you will not want to miss out just because you were quicker to jump on such a deal.

Options for Remortgaging Buy to Let

When it is time to remortgage buy to let property there are a few options at your disposal and things that must be considered.


The first thing to do is see if there are any more attractive buy to let mortgages available. Check the rates, as you may be able to find ones with much lower interest rates, especially given changes in the property market are constantly ongoing.

It is worth looking at those with fixed rates and for how long they remain fixed when weighing up your options.

Switch Mortgage Types and Fees

Check your existing buy to let mortgage agreement to ensure that you can cancel it and switch to another one without receiving too many hefty charges.

Even if you have found a buy to let mortgage with a lower rate, it is important you look at any fees incurred, as some with a lower rate but higher fees can work out more expensive in the long run.

Extended and Second Mortgages

Rather than remortgaging, another option is to take out a second (or second charge) mortgage on the property. If your mortgage includes a high early repayment charge then this can make it more affordable rather than remortgaging.

Assuming you own (and live in) another property, extending this mortgage is another choice. Interest rates are generally lower than buy to let mortgages and can provide enough to secure such a deal.

Remortgage to Fund Buy to Let

Those looking to get in on the buy to let property deals can easily remortgage their current property in order to afford it.

This should help fund the amount required for a deposit, but there is the added risk that if you cannot find tenants, or fall behind on buy to let repayments, that you may end up in financial difficulty.

Further Considerations

As well as remortgaging either your main or buy to let property, there are a few other considerations to make. You will need to change any existing and new insurance policies, legal costs, stamp duty and many other costs incurred from the property changes.

Work out whether you can truly afford a buy to let remortgage before going all in. Take a look at some of the properties available here at House Network, as one of the premier online estate agents, and see if one appeals as a buy to let property.    

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