Buy to Let

How to remortgage your buy to let

Your Mortgage
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Your Mortgage

Like your primary residential mortgage and many other things in life, it pays to shop around when it comes to your buy-to-let mortgage(s).

You don’t have to wait until the end of your mortgage term either, you can switch at any time. But buy-to-let mortgage rates have risen overall since the credit crunch set in, so if you arranged your deal before 2008, it may pay to sit tight on your lender’s Standard Variable Rate (SVR) rather than remortgaging now.


Also be aware that you may incur penalties if you remortgage before the end of the agreed term.


Reasons to remortgage


Similarly, you may have been planning to increase your buy-to-let mortgage to free up some capital to invest in another property. Mortgage lenders are looking to minimise their exposure to risk in the current climate, so don’t automatically expect them to be forthcoming if you intend to raise capital in this way.


If you have more than one property, you may want to remortgage so that your portfolio is all under one roof, so to speak. Some lenders offer mortgages based on an amount for the whole portfolio rather than the individual properties. Again, remember to check the terms of your current mortgages before you do this, as you may incur charges for switching.