Best Buy-to-Let Remortgage Rates and Deals
So you found the best buy-to-let mortgage but now your deal is near its expiration date. Perhaps it’s time to remortgage your buy-to-let property. On this page you’ll find all sorts of helpful information about buy-to-let remortgages, including how to find the best deal, the process you go through and our FAQs. You can also compare the best buy-to-let mortgage rates on the market with our free buy-to-let mortgage comparison tool.
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buy-to-let remortgage comparison tool UK
Remortgaging buy-to-let mortgages? If you own up to 3 rental properties then use our BTL remortgage comparison tool below to find the latest and best deals for you on the market right now.
If you own 4 or more rental properties then visit our page to on portfolio landlord mortgages.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
These are indicative figures only and may not represent all the costs associated with each product. For more information speak to one of our mortgage brokers on 0330 433 2927.
What Is a Buy-to-Let Remortgage?
So what is a buy-to-let remortgage? Remortgaging a buy-to-let property is when you decide to switch to a new buy-to-let mortgage for a property that you already own and likely already have a mortgage on. It is very similar to when you first take out a buy-to-let mortgage, except you’re not purchasing the property this time.
Reasons for switching can vary. It’s typically something you can do when your current deal expires so that you’re able to secure a cheaper rate and avoid going onto your lender’s more expensive SVR (standard variable rate). Or, you may switch to a new deal because your needs have changed, you want to release equity, there are better deals on the market and/or you have new intentions with the property (e.g. perhaps you want to turn a second home into a rental investment and so need to remortgage it onto a buy-to-let product).
There are many benefits to remortgaging a buy-to-let property, such as securing a cheaper rate or releasing equity and raising money. When you take out your new mortgage, it will include the outstanding value of the previous mortgage, as well as the value of any equity you wish to release. This money can be used to fund improvements to your property, pay off any outstanding debts or use as a deposit to help you purchase another property and expand your portfolio.
When Should You Remortgage a Buy-to-Let Property?
Usually, a BTL remortgage is best done when your current mortgage term is coming to an end. When you take out a fixed mortgage, the rate you pay on a monthly basis will be fixed for a certain length of time, say 2, 3, or 5 years. After this, you’ll be transferred onto your lender’s SVR which is normally more expensive. Therefore, it’s a good idea to start the process of remortgaging up to 6 months before the end of your introductory rate period. Doing this means that you won’t have to worry when you come to the end of your deal as you’ll automatically be switched to your new one and what’s more, your mortgage broker will inform you if a better deal becomes available during the period between arranging your remortgage and it being actioned.
What to Consider Before Choosing a Buy-to-Let Remortgage
As with all buy-to-let mortgages, there are a number of factors to consider before deciding which buy-to-let remortgage rate to choose.
Compare Current Deals
For buy-to-let mortgage deals, it is important to do some research and compare buy-to-let remortgages from different lenders. That way you can ensure that you get the right deal to fit your circumstances.
Available Rates
There are numerous factors that can affect what rates are available to you and you need to be aware of them. These factors include the amount of equity still left in your property, your rental income, credit history and the type of property you own. It would also be beneficial to compare different mortgage lender’s remortgage rates, to ensure you’re getting the best deal.
Equity
While the actual process of taking out a remortgage on a BTL property is very simple, you are required to have a deposit that is between 25% and 40% of the price of the property. For a remortgage this takes the form of equity in your property. Furthermore, you will pay higher interest rates compared to residential homeowner mortgages.
If you wish to reduce the outstanding balance when you remortgage, you can contribute additional funds as a deposit so that you have more equity in the property. This can give you access to cheaper rates.
Additional Costs
To overcome ICR calculations, so that some lenders are able to offer more competitive rates, they may charge more expensive arrangement fees. Bear in mind you may also have to pay mortgage broker fees.
Changing Lender
Another consideration is whether you decide to remortgage and change your lender or opt for a product transfer. Product transfers tend to be simpler but they may not always offer you the best rate.
The simplest and quickest way to decide what rate, deal and lender are right for you is to speak to a mortgage broker like John Charcol. Our advisers know the market and will learn about your situation and requirements before researching deals and finding the best option for your circumstances.
Finding the Best Remortgage Buy-to-Let Rates
The best buy-to-let remortgages are often exclusive to intermediaries and independent mortgage brokers like John Charcol. You can also use our tool to compare buy-to-let remortgages and find out which remortgage buy-to-let deals could work for you.
Like with getting the best buy-to-let mortgages, there are many factors that will determine the buy-to-let remortgage deals available to you, how expensive they are and what best meets your requirements. Factors such as your credit history, your rental income, the property itself, how much equity you have, how much you want to release and more.
Our expert mortgage advisers can help you by researching the remortgage market and recommending the best buy-to-let product for your situation. We even manage your application from start to finish, liaising with lenders and keeping you updated.
Get in touch with one of our mortgage experts to find out more about getting the best buy-to-let remortgage deal for you.
Looking to Remortgage a LTD Company BTL?
A LTD company buy-to-let mortgage is a way for your company to take out a mortgage in the company’s name, rather than your own name. It is a useful product, as it allows you to keep both your personal and business portfolios separate, as well as potentially being more tax-efficient than a personally held buy-to-let mortgage. As such, the application process for both the mortgage and remortgage will require different items of evidence.
Learn more about LTD company BTL mortgages and compare rates.
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John Charcol Expert Tip - September 2024
"Buy-to-let remortgages offer landlords a valuable opportunity to reassess their investment strategy and improve financial flexibility. Whether you're looking to secure a better interest rate, release equity for further property investments, or manage rental income more efficiently, remortgaging your buy-to-let property can unlock significant benefits. With tailored options designed for landlords, you can optimise your portfolio and maximise your returns."
Why Remortgage Buy-to-Let Properties with John Charcol?
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BTL Remortgage Process
1. First Call
When you contact us, we’ll arrange an appointment between you and one of our advisers – this can be over the phone or face to face. Your adviser will ask you some questions and, once they have all the right information, they’ll go away and find you the best BTL remortgage for your current and future needs. They’ll then organise a follow up appointment to tell you about their recommendation.
2. Decision in Principle
After your adviser has presented you with their recommendation and you’re happy to proceed, they’ll work on securing your DIP (Decision in Principle). Your DIP is a promise from the lender that they’ll loan you the money on the condition that the information you’ve provided is correct and subject to a valuation on the property.
3. Pre-Application and Submission
After securing your DIP, we’ll start to prepare your mortgage application. We’ll send you a pack that explains all the different documents the lender needs. You’ll be assigned a client relationship manager who’ll go through your documents and get everything ready for submission. Your adviser will then submit your full mortgage application.
4. Lender Underwriting and Valuation
The lender carries out a process called “underwriting” where they check all the information and documents you’ve provided in your application. They’ll also instruct a mortgage valuation on the property to make sure there are no significant problems with it. Sometimes a lender will only instruct a desktop valuation for a remortgage – rather than a physical valuation – as your property would have likely had a valuation and internal inspection when you took out your first mortgage.
5. Mortgage Offer
Following a successful underwriting process and valuation, the lender will accept your remortgage application and send you a mortgage offer. They’ll also send a copy to us.
6. Conveyancing
After you accept the mortgage offer, you’ll go through conveyancing which is where a solicitor arranges all the legal paperwork so you can transfer from one lender to another.
7. Completion
Finally, after you’ve signed all the paperwork, your solicitor will set a date to draw down the new money to clear the outstanding balance with your current lender. Any excess funds will be returned to you. This is called completion.
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Struan
Brilliant service. Both Mark and Samm were very clear right from the start and happy to answer and explain any questions, no matter how small. Would highly recommend!
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Verified BuyerThe whole team at John Charcol have been amazing from start to finish! We first used the firm back in 2013 for our first property, fast forward 11 Years and we didn’t think twice about contacting them again to arrange a new mortgage. We were put in touch with Jade who was very knowledgable and gave us the best advice. She kept in touch throughout the whole process and was even chasing our solicitor at times to ensure things went smoothly. We won’t hesitate to use John Charcol again in the future. Thank you Maria & Dan
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Verified BuyerI am very thankful for David Putneys’ professional, responsive and honest assistance in securing the mortgage loan for our home in the UK. David was organized and thorough, as well as kind which made all of the difference when we faced a number of challenges to reach our goals. His dedication and commitment to servicing his client's requirements were exceptional. I will continue to recommend David Putney at John Charcol to family and friends that require mortgage assistance.
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Verified BuyerSteve is always on the case and very pleasant to deal with. Highly recommended.
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Samm was superb at helping rework our life and protection insurance products. Was very helpful and friendly, and also flexible on times to discuss our needs.
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Verified BuyerMy particular situation was quite unusual and complex - being retired and having a foreign income. Not only did John Charcol find me a mortgage, but a health insurance policy to cover the term at a very competitive price. I couldn't be more please with the service they have provided.
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BTL Remortgage FAQs
Why Remortgage Your Buy-to-Let?
You can remortgage your buy-to-let property to release equity if you need to raise some money. It’s also a way to get a better interest rate or change the terms of your existing mortgage deal. Whatever your reasoning for remortgaging a property, it can have an impact on your monthly repayments and ROI (return on investment).
Can I Remortgage My Home to a Buy-to-Let?
It is possible to remortgage your home onto a buy-to-let basis. If you're looking to purchase a new main residence but wish to keep your existing property to let out - or are struggling to sell it - it may be possible to remortgage it onto a buy-to-let product. This is called let to buy. In some circumstances, when you remortgage your previous residence onto a buy-to-let basis, you may be able to release equity which you can then use towards your deposit on your new home.
What Criteria is Considered for a Buy-to-Let Remortgage Deal?
Every mortgage lender has different buy-to-let mortgage eligibility criteria, but the best BTL remortgage rates available to you will depend on your credit history, rental income and how much equity you have. A mortgage broker can take all of these factors into account to find the best mortgage deals for you.
Why Use a Mortgage Broker for a BTL Remortgage?
Our mortgage advisers are experts in all aspects of mortgages and remortgages so we can help you find the best deal. We’ll pair you with an adviser who will find you the best price for your situation so you don’t have to do the hard work. Our brokers will support you every step of the way.
How Do Interest Rates Work When Remortgaging a Buy-to-Let Property?
The BTL remortgage deals on the market are essentially the same products as the BTL mortgage deals for purchases. This means the interest rates are the same and work in the same way. Interest rates for BTL remortgages and mortgages are often hard to predict and they can fluctuate for extended periods of time. With BTL products in general, the interest rates are usually higher. We would suggest chatting with one of our advisers who can help you identify the interest rates available for your remortgage.
What Fees Do You Pay When Remortgaging a Buy-to-Let Property?
There are 6 types of remortgage fees: Early Repayment Charge, Deed Release Fee, Product Fee, Conveyancing Fee, Mortgage Broker Fee and Valuation Fee. You won’t necessarily have to pay all of these when you remortgage. We recommend you discuss these fees with a John Charcol mortgage adviser, as they can walk you through them all long before you finalise your deal.
Insurance and Protection with John Charcol
As well as arranging your mortgage, we can help you organise your life insurance and protection. Our experts can find cover tailored to you for your mortgage, income, family and more. Simply visit out Insurance and Protection Hub for all sorts of resources to get you started!
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You can now get a buy-to-let mortgage at interest rates to suit almost any circumstances. Our guide takes you through the choices involved in more detail.
Remortgaging Guide
Remortgaging means to switch to a new deal with a different lender but stay in the same property. Learn about remortgage costs, valuations and see our advice.
Capital Gains Tax Guide
You pay Capital Gains Tax on the profit you make from the sale of a property that’s not your main residence. In our guide we answer all your questions about CGT.
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On this page you’ll find our detailed mortgage terminology glossary. There’s a lot of jargon out there but we’re here to make it easy.