How to Remortgage Your Buy-to-Let

Releasing equity when you remortgage is common but how much you can raise on your property will depend on certain factors – e.g. property value, rental income and equity. Your buy-to-let remortgage adviser will discuss your options with you.

You’ll also need to understand the impact of borrowing more as it will cost you more in interest over the same period. It can also change the remortgage deals that are available to you.

Landlords often leverage their portfolio of rentals to purchase a new property. Again, you must understand that this might have an impact on your remortgage interest.

It’s incredibly important to consider this if you have existing tenants, as paying more to remortgage could decrease your profit (yield).

Everyone has high costs for refurbishing properties now and then, so it makes sense to explore the options of using equity from the house you’re investing in. Be sure to check the financial impact it’ll have on your monthly payments with your adviser.

It is technically possible to consolidate debt with a buy-to-let remortgage, but we don’t typically recommend this as most buy-to-let mortgages are interest-only which means you wouldn’t be paying it off over period of time like with a repayment mortgage.

Circumstances change and increasing your buy-to-let remortgage to pay off an ex can be done.

Increasing a remortgage for a rental property will mean that you might have increased monthly payments, which will impact your profit (yield).

If you try to remortgage before your current mortgage has ended, you might have to pay ERCs (early repayment charges).

This is possible, however there are fewer banks that’ll lend you money for this purpose - your remortgage adviser will know who does.

You can switch to a cheaper remortgage deal, however you need to consider the best time - coming out of a mortgage early can cost you (ERCs).

It makes sense to search for the best buy-to-let remortgage deals, but it’s essential to speak to an adviser or understand how to compare deals.

As with all lending, there are fees to pay and a difference in flexibility. A cheap buy-to-let remortgage deal with high fees can work out more expensive overall.

You can remortgage from a buy-to-let to a residential if you’ve decided to switch your main home. Doing this can be complex so it’s best to discuss with a broker about your remortgage options. If for whatever reason you want to stay on your current buy-to-let mortgage deal but want to live in the property yourself, you must contact your mortgage provider to see if this is something they’d allow and what the terms and conditions are for your mortgage.

It is definitely possible to get a buy-to-let remortgage with bad debt or poor credit, but you may find your options are limited. The easiest way to ensure you get the best deal for your circumstances to speak to a mortgage broker like John Charcol.

To ensure you have no issues with your remortgage, you want to make sure you disclose the correct information about your letting to your broker – e.g. is it an HMO, a student let, a holiday let, a normal buy-to-let or something else like a rental property for a family member? This is because there are different mortgages with different criteria for every type of landlord and rental property and your broker will need all the correct information to find you a suitable product.