In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
A buy to let remortgage provides a way for landlords to purchase an additional rental property to expand their portfolio by releasing funds.
I want to
Initially, lenders assess your property’s value and your current financial situation.
A broker will assess your circumstances along with the rates that are available to you, with the aim of finding the most cost effective product on the market at the time for you.
Each lender will have their own criteria so it’s important to match you up with the most suitable deal for you.
It’s important to keep in mind that remortgaging can influence your monthly repayments and the return on investment.
Therefore, make sure this type of remortgaging scheme aligns with your long-term goals.
What are the benefits?
Rather than sticking with the same lender, you can switch to a different one who may offer terms more suitable to your circumstances. This could be in the form of lower interest rates or more flexible repayment options. For landlords, remortgaging means they avoid being moved to the lender’s standard variable rate, which is typically higher, when the existing fixed-term mortgage deal ends.
What are the risks?
Lenders will take into consideration why you’re remortgaging, for example to release equity, so you will need to have a valid motivation.
To learn more about getting started with a buy-to-let remortgage, arrange a consultation with the expert team at UKMC.
First, you should assess your current deal, especially if it’s ending in the next six months.
If that’s the case, and you do nothing, then you’ll be switched to your lender’s standard variable rate (SVR), which is typically higher than other fixed (and variable) deals available.
If you need support getting started with buy-to-let remortgages, feel free to complete our call back form today.
Lenders assess the rental potential of the property you’re looking to buy. In most cases, your projected rental income is used to calculate how you will make the mortgage repayments. Some lenders may require a rough estimate of your expected rental income, which should come from an Association of Residential Letting Agents, registered letting agent to ensure accuracy and reliability.
Personal affordability plays a lesser role in buy-to-let mortgages compared to residential mortgages. However, it’s important to note that many buy-to-let lenders impose a minimum income requirement. This means that while your rental income is critical, lenders will still consider your overall financial situation before approving your application for a mortgage.
There are no specific rules set by lenders regarding how you generate your income. For instance, being self-employed is perfectly acceptable, as being a landlord is essentially considered a self-employed role. This flexibility allows individuals with diverse income sources to qualify for buy-to-let mortgages, making property investment accessible.
If you are considering a buy-to-let remortgage or any other type of mortgage, seeking professional advice is advisable. UKMC can assist you in making informed decisions about how to finance your home purchase. Their expertise can guide you through the complexities of mortgage options and help you select the best financing solution for your needs.
Find expert guidance, and all the information you need to make informed decisions on your path to homeownership.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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