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Remortgaging your buy-to-let property can help you lower your interest rate, access extra funds, or manage your portfolio more effectively. Whatever your goal, we’ll help you find the right mortgage.

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Navigate the buy-to-let remortgage process.

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Discover how buy-to-let remortgages work, the eligibility requirements, and the potential benefits of remortgaging.

What is remortgaging, and how does it differ from a product transfer?

Both product transfers and remortgages involve changing your mortgage deal, but they have key differences:

Remortgage

  • Switching to a new lender: You take out a new mortgage with a different lender.
  • More options and flexibility: You can compare deals from various lenders to find the best rates and terms, borrow more money, or change your mortgage terms.
  • Can involve more paperwork and time: The application process might be more extensive. The new lender will likely want to assess the property’s value.

Product Transfer

  • Staying with the same lender: You switch to a new mortgage product offered by your current lender. Often involves less paperwork, quicker approval process and may not require a new valuation. 
  • Limited options: You can only choose from products offered by your existing lender.
  • Good for straightforward situations: Ideal if you’re happy with your current lender and simply want to switch to a new deal with them.

How Much Can I Borrow?

Discover your buy-to-let borrowing potential. Our calculator uses your expected rental income to estimate how much you might qualify for, just enter the monthly rental income.

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Disclaimer: Rates apply for England and Northern Ireland only.
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How to Apply for a Buy-to-Let Remortgage

Remortgaging a buy-to-let involves similar steps to securing a standard buy-to-let mortgage, but with a few key differences:

Evaluate Your Goals for Remortgaging:

  • Begin by clarifying why you’re considering a remortgage. Whether it's to secure a better interest rate, release equity for additional investments, or switch to a more suitable mortgage product, identifying your objective will help guide the process and narrow down suitable lenders.

Review Your Current Mortgage Terms:

  • Understand the terms and conditions of your existing buy-to-let mortgage, including any early repayment charges or exit fees. Knowing these details can help you evaluate the financial benefits of switching to a new lender or product and decide if the timing is right for a remortgage.

Assess the Rental Income Potential:

  • Since buy-to-let remortgages are based on rental income, assess the property's rental yield and local market rates. Many lenders have specific rental coverage ratios (often around 125%-145% of the mortgage payment) that you’ll need to meet. This helps ensure that the property income will support the mortgage.

Research Lenders and Mortgage Products:

  • Use mortgage comparison tools or consult a mortgage broker who specializes in buy-to-let remortgages. Different lenders offer varying rates, terms, and lending criteria, so it's worth exploring multiple options. Brokers can help identify deals that meet your goals and may also access exclusive offers not available directly to borrowers.

Obtain an Agreement in Principle (AIP):

  • An Agreement in Principle (AIP) gives you a provisional indication of how much you may be able to borrow based on your financial profile and rental income. While not a guarantee, an AIP strengthens your remortgage application and provides clarity on potential borrowing limits before you move forward.

Submit a Full Mortgage Application:

  • Once you have chosen a lender and product, complete a full mortgage application. You’ll need to provide relevant documents, including proof of rental income, details about your current mortgage, personal financial information, and property details. The lender will review these as part of their underwriting process.

Underwriting, Property Valuation, and Final Offer:

  • The lender’s underwriting team will conduct a detailed assessment of your financials and arrange a property valuation to confirm its value and rental potential. Upon successful completion of underwriting, you’ll receive a formal mortgage offer. After legal checks and any additional paperwork, the funds will be released, finalizing the remortgage process.

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Why Should I Consider a Buy-to-Let Remortgage?

A buy-to-let remortgage can be a strategic move for landlords looking to:

  • Secure a lower interest rate: If your current fixed-rate deal is ending or interest rates have fallen, remortgaging could save you money on your monthly payments.
  • Reduce monthly payments: Switching to a longer mortgage term or a different type of mortgage could lower your monthly outgoings.
  • Access additional funds: You can remortgage to release equity from your property, which can be used for renovations, purchasing another property, or other financial needs.
  • Adjust mortgage terms: Remortgaging allows you to change your mortgage terms to better suit your current circumstances and financial goals. For example, you might switch from an interest-only to a repayment mortgage.
What Costs Are Involved in a Buy-to-Let Remortgage?

Remortgaging a buy-to-let property can involve various fees, such as:

  • Valuation fees: These typically range from £200 to £500, depending on the property value and the lender.
  • Legal fees: Solicitors’ fees can vary, but expect to pay around £500 to £1,500.
  • Early repayment charges: If you exit your current mortgage early, you might incur an early repayment charge. This can vary significantly, so check your existing mortgage terms.
  • Arrangement fees from the new lender: These can range from £0 to £2,000 or more.

Some lenders may offer incentives like free valuation or reduced legal fees, so it’s essential to compare offers to find the best deal.

Can I Release Equity with a Buy-to-Let Remortgage?

Yes, releasing equity through a buy-to-let remortgage is a common strategy. Landlords can use the funds to reinvest in more properties, finance renovations, or meet other financial needs. However, lenders will assess the property’s rental income and current value to determine how much equity can be accessed.

How Does Rental Income Affect Buy-to-Let Remortgage Eligibility?

Lenders evaluate rental income to ensure it adequately covers the mortgage payments, typically by 125-145% (known as the rental coverage ratio). This calculation also considers potential interest rate rises. Ensuring your rental income aligns with these criteria is key to a successful remortgage application.

What Loan-to-Value (LTV) Ratios Are Available for Buy-to-Let Remortgages?

Buy-to-let remortgages usually offer loan-to-value (LTV) ratios ranging from 60% to 80%, depending on the lender and the property. A higher LTV means you can borrow more relative to the property’s value but may come with higher interest rates. Lower LTVs often qualify for more competitive rates.

Can I Remortgage a Buy-to-Let Property with Tenants in Situ?

Yes, most lenders allow remortgaging with tenants in place, provided the property meets their criteria for rental income and tenant type. However, some lenders may have restrictions on specific tenant types (like students or multiple occupancy). It’s essential to check lender policies or consult a mortgage advisor for clarity.

Are There Different Types of Buy-to-Let Remortgage Rates?

Buy-to-let remortgages offer various rate types, including fixed, tracker, and variable rates. Fixed rates provide payment stability, while tracker and variable rates can fluctuate based on market conditions. Choosing the right type depends on your financial goals, risk tolerance, and market outlook.

What Documents Do I Need for a Buy-to-Let Remortgage Application?

Typically, lenders will require proof of identity, proof of income, rental income statements, recent bank statements, and details about the existing mortgage. They may also ask for documentation on other properties if you have a portfolio. Having these documents ready can speed up the application process.

How Long Does the Buy-to-Let Remortgage Process Take?

The buy-to-let remortgage process typically takes 4-8 weeks, depending on the lender’s requirements, the valuation process, and legal work involved. Being prepared with all necessary documents and choosing a lender known for efficiency can help expedite the process.

How is affordability assessed for a buy-to-let remortgage?

Lenders assess affordability for buy-to-let remortgages by focusing on the property’s rental income and your personal financial situation. They’ll look at:

  • Rental coverage ratio: This calculates whether the rental income sufficiently covers the mortgage payments, usually by 125-145%.
  • Personal income: Lenders may consider your personal income to ensure you can afford the mortgage if there are void periods or unexpected expenses.
  • Credit history: A good credit score demonstrates responsible financial management.
  • Existing financial commitments: Lenders will review your other financial obligations to assess your overall affordability.
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