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        Updated: April 20, 2024

        Buy-to-Let Remortgages

        Need a new deal and looking to remortgage your buy-to-let property? Read through our guide to find out how it’s done.

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        Remortgaging a buy-to-let (BTL) property is usually quite straightforward, but be aware that if your circumstances have changed, it can be a little more complicated.

        The main objective of most buy to let remortgages is to get the best deal you can, so in this article we’ll guide you through the process to make sure that happens, reveal what rates you can expect and explain how the right broker can help you get the best deal.

        Read on for more information or jump straight to a topic using the menu below…

        Can you remortgage a buy-to-let?

        Yes. Most lenders will allow you to remortgage a buy-to-let property after six months. And if you wait longer than six months, you may find a better range of deals to choose from.

        The deal you get also depends on the reason you want to remortgage, and may affect how the mortgage provider views your application.

        An experienced mortgage broker, one who specialises in remortgaging buy-to-lets can save you both time and money, by finding exactly the right lender to approach.

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        Maximise your chance of approval with specialist advice from an expert in Buy to Let Mortgages.

        How to remortgage a buy-to-let property

        In most cases, applying for a buy-to-let remortgage is usually no more difficult than refinancing a residential property, but a bit of  preliminary work from your end will help your application.

        Here are a couple of things we’d recommend you do before you put in your application.

        1. Have essential documents ready: In most cases, you’ll need to have bank statements covering at least the past 3 months. Proof that you’re living at your current address, and make sure you are on the electoral roll (many lenders may reject an application if you are not on the electoral roll). You’ll also need your mortgage paperwork for your buy-to-let property and a record of your rental income.
        2. Calculate your loan-to-value ratio: First add the amount of equity you hold in your property to any additional borrowing you need and work out what the property is worth (you can check services like Zoopla or Mouseprice for a rough estimate based on the value of similar homes in the same area). Next, divide the total loan by the value of your property and multiply by 100 to calculate your loan-to-value ratio.
        3. Talk with a specialist buy-to-let broker: Next, it’s highly recommended that you speak to a mortgage broker, particularly one who specialises in buy-to-let remortgages. Rather than being an expense, a good broker can save you time and a substantial amount of money over the term of the remortgage by finding the best deals. They’ll guide you through the application, offering the right advice and finding a mortgage provider who specialises in buy-to-let remortgages.

        We offer a free, broker-matching service, that will quickly assess your needs and circumstances, and then pair you with a mortgage advisor who’s ideally placed to help you get the best deal when refinancing your investment property – Make an enquiry to get started.

        Calculate your new repayments

        To work out what your new mortgage payments will look like after you’ve refinanced, simply enter the details for your new mortgage agreement into our calculator below.

        calculator icon

        Buy-to-Let Mortgage Calculator

        Our buy-to-let mortgage calculator can show you how much your mortgage could cost you each month and overall. Simply enter the rental property value, deposit, anticipated monthly rent, interest rate, mortgage term and our caculator will do the rest.

        Enter the value of the rental property here
        £
        This is the percentage of your property that you now own
        £
        Most lenders will require a deposit of at least 20%
        Deposit must be less than the property value
        Enter the anticipated monthly rent here
        £
        3%-3.5% is an average figure but the rate you get may vary
        %
        25 years is the average, but most lenders offer both longer and shorter terms
        years
        Borrowing

        Loan to Value ratio (LTV):

        Most lenders won't offer buy-to-let mortgages over a LTV of 80%.

        Interest Cover Ratio (ICR):

        Most lenders require rental income to be at least 125%-145% of the interest repayments for a buy-to-let mortgage.

        Get started with a specialist buy-to-let broker to find out how much they could help you save on your monthly mortgage repayments.

        Why remortgage a buy-to-let?

        There are a whole range of very good reasons why you may want to refinance your buy-to-let property, the most obvious being to find a more favourable interest rate and, subsequently, lower your monthly repayments.

        If you’ve just been moved to a lender’s standard variable rate (SVR), then it makes sense to look for a better deal, either with another mortgage provider, or your existing lender.

        Other reasons might include –

        • Wanting a deposit for another property. If you want to increase your property portfolio, remortgaging to release equity can be an effective way of generating the cash for a deposit on another buy-to-let
        • Property renovations or improvements. Many lenders are happy to help you remortgage to fund home improvements as it could increase the value of the property
        • Consolidating debt. This is a less attractive reason for lenders. Some may not consider it at all, as it is seen as increased risk due to the debt being incurred in the first place. Other mortgage providers may limit the amount of equity you can release
        • Buying out a partner. Using equity release to buy out a partner by remortgaging is usually acceptable with most lenders. As long as you meet the usual affordability checks and keep within their loan to value (LTV) limits, it should be relatively simple
        • To fund life events and purchases. Most lenders will entertain a remortgage for equity release for almost any legal and worthwhile purpose. It could be to finance a wedding, new car, holiday etc.

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        What are the typical buy-to-let remortgage rates?

        The table below illustrates some of the best interest rates available currently (May 2023):

        Lender Product Details
        Frosted Rates Image

        Looking for more rates and deals?

        We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market and help you secure the best ones available.

        Last updated May 2023

        The rates quoted above were correct at the time of writing (May 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time. 

        Why going direct to a lender is not recommended

        Approaching a high street mortgage provider directly can leave footprints all over your credit rating, which is something you need to avoid at all costs.

        Moreover, you’d be limiting yourself to just one set of remortgage deals when there’s a whole market out there.

        The lowest interest rate may not be the best deal when you take fees and charges into account, so the best option is to talk to an experienced broker who is an expert in buy-to-let remortgages.

        They will know the best lenders to approach (without leaving footprints all over your credit rating) and those offering the most competitive rates, including fees and charges.

        The brokers we work with also have access to exclusive deals that aren’t available to the general public.

        What fees and charges will apply?

        Remortgaging a buy-to-let can incur fees and charges from the mortgage provider. Some lenders may also insist on a valuation, with the costs associated with that, and there are solicitor’s fees to consider.

        It’s very important that you consult with a fully qualified accountant or tax consultant to fully understand, and plan for, your tax obligations.

        Will your rent cover agents’ fees, maintenance and interest? Most lenders require that the rent received is high enough to cover your mortgage payments by 125%, while some may insist on 145% or higher.

        What about if you have bad credit?

        Yes. Depending on the age, severity and reason for your bad credit, this could be possible.

        All mortgage providers are different, and have different criteria when dealing with bad credit, so approaching the right mortgage lender is paramount here.

        A few lenders may overlook a late payment or two in the last 12 months, but not a bankruptcy or repossession.

        The likelihood of getting a buy-to-let mortgage with bad credit increases the older the bad credit mark becomes, and some lenders might consider your application if the bad credit was the result of an unexpected life event, rather than general financial mismanagement.

        Read our guide to bad credit buy-to-let mortgages for more information.

        Get matched with a specialist buy-to-let bad credit mortgage broker

        As you can see, there are quite a few things to consider when applying for a buy-to-let remortgage, but with the right advice, it can go smoothly and potentially save you a lot of time and money.

        Everyone has unique financial circumstances, which is why it’s important that you are matched with the right buy-to-let mortgages broker, one who fully understands your needs and financial situation, and has the right contacts and experience to help you get the best possible remortgage deal.

        We offer a free, broker-matching service that will quickly assess your needs and circumstances to pair you with a mortgage advisor who specialise in buy-to-let remortgages.

        Call 0808 189 0463 or make an enquiry to get started with them today.

        Ask us a question

        We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.