Remortgaging your buy to let:

basic information on buy to let remortgages in the UK

Remortgaging your buy to let may not be a priority when it comes to organising your finances.  Many UK borrowers don’t get around to reviewing their residential mortgage let alone their buy to let, perhaps due to the belief that it’s too costly and difficult.  Yet lenders are improving products all the time, so it could be time to think again.

When the market outlook looks gloomy, you might consider selling your buy to let.  It’s worth noting that you will be liable for capital gains tax on any profit made.  One way to hang on to your investment and circumvent low rental yields is to remortgage to a better deal, a process which can be surprisingly simple. 

How buy to let remortgaging works
Buy to let mortgages have come a long way.  The notion of reviewing them within a competitive market is gradually catching on.  As a result, the gap between residential and buy to let deals is beginning to narrow. 

Generally, you can expect to pay a higher rate for a buy to let mortgage than a residential, and often there are fees attached.  You are normally required to have a loan to value of 85% maximum and eligibility is based upon rental income.  The lender calculates a percentage margin against the interest rate to set the rental income required. 

A few calculations are made to work out whether it’s worth your switching loan, taking into account any early repayment charge attached to your current loan, plus fees: legals, valuation and arrangement. 

Seeking buy to let advice

If one of the reasons you haven’t considering remortgaging your buy to let is that it could cost too much, then you will be pleased to know that at L&C you don’t pay a penny for our expert advice.  Not only that, but L&C is a whole of the market broker meaning that we can access all the top products to find the best deal to suit your needs.  For example, if you require flexibility there are sometimes deals available without extended early repayment charges.  See free mortgage advice: our no broker fee policy.

If your reason for not remortgaging is that it’s too much trouble, then you will be pleased to know that L&C aims to offer a hassle-free service.  We have calculator systems which can quickly tell you the rental income required and whether you can save money. 

With minimal hassle and costs, it’s worth finding out today whether you can save money on your remortgage buy to let.
 
Please note: although the FSA does not regulate most Buy to Let mortgage advice, check that the broker concerned will treat you with the same skill, care and diligence as if they did.