Remortgaging your buy-to-let loan
Updated: Mar 2, 2021
You might want to save money with a better rate. Or borrow more money to buy another property. Either way, remortgaging your buy-to-let mortgage is usually pretty straightforward.
Most lenders won’t let you remortgage to do things like pay a tax bill or invest in shares. It might be a good idea to check your reasons for remortgaging with your broker before you approach lenders.
You could save money
If your fixed or tracker mortgage has come to an end, you might find yourself on your lender’s standard variable rate (SVR). And you could end up paying hundreds of pounds more than you need to every month.
Expect higher interest rates than residential
Your buy-to-let remortgage will almost always mean higher interest rates compared to residential remortgages. That’s because lenders see buy-to-let mortgages as a higher risk – they’ll be considering the odds your tenants don’t pay their rent, or that you have an empty property/periods of time between tenants.
How to find the right deal
If you’re looking for remortgaging deals yourself, don’t be fooled by amazing rates and shiny deals. There might be other fees, and changing interest rates will affect how much you pay over the life of your mortgage – its total cost. A mortgage broker can help you make sense of the options, and find the one that’s right for you.