Find your best local estate agent Start here
It's a challenging time if you're looking at remortgaging your Buy to Let in 2023. Mortgage rates are up significantly compared to what we’ve been used to in previous years. Here we look at the ins and outs of remortgaging and how to secure the best Buy to Let mortgage deal.
Remortgaging a Buy to Let is when you switch to a new mortgage on a property you rent out. It could involve moving to a different lender or staying with your current lender and getting a new deal (referred to as a product transfer).
There are a numbers of reasons for remortgaging a Buy to Let property. These include:
Remortgaging when your current Buy to Let mortgage deal ends could save you thousands of pounds a year on your mortgage payments. The amount you can save will depend on the rate on your current Buy to Let mortgage deal vs the mortgage rate you can get.
If you’re coming off a cheap fixed rate mortgage in 2025, your new Buy to Let mortgage is likely to cost you more than your current one. But remortgaging could still save you money because if you do nothing and end up on your lender’s standard variable rate it could cost you significantly more.
If your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 4 months, you should get mortgage advice.
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
Remortgaging a Buy to Let can be a good way to raise money. This is done by taking out a new mortgage which includes the outstanding value on the previous mortgage, plus the value of the equity you want to release.
When remortgaging a Buy to Let, this money could then be used to:
The days of being able to cut your Buy to Let mortgage payments by remortgaging onto a cheaper deal are long gone for many landlords. In most cases, landlords are finding rates are much higher when they come to remortgaging a Buy to Let than they’re currently on. But this won’t be the case in all instances. Whether or not you can find a deal that’s cheaper than your existing one will depend on your current deal and the options you have available to you. It’s a good idea to get whole of market mortgage advice to explore your options. The best thing to do is speak to a fee-free mortgage broker now to explore your options from over 90 lenders. You can get an idea now over the phone or online.
Buy to Let mortgage rates are up significantly when compared to the ultra-low rates we have seen in recent years. So for most landlords coming off a cheap fixed deal and looking for to remortgage this will be a financial shock. However, if your Buy to Let mortgage deal ends in the next six months, it’s advisable to start the remortgage process sooner rather than later.
In recent months we’ve seen the best mortgage deals pulled at short notice so by getting in early you may be able to secure a mortgage rate before it disappears then keep it under review. But crucially, you’ll want to avoid rolling onto your lender’s standard variable rate when your deal ends as these can be extremely expensive.
For more advice, see our guide Should I Remortgage Now?
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
For the best Buy to Let mortgage rates on offer at the moment, take a look at our best buy to let mortgage rates guide which is updated with the best deals this month and analysis on what’s happening in the market. In terms of what type of mortgage you opt for, again it depends on your circumstances.
According to research by Foundation Home Loans at the beginning of 2023, a significant number of existing landlords – one-third – say they plan to remortgage over the next 12 months. Of those who intend to remortgage, one in three are unsure, at this stage, what product they might opt for, with many saying they will take advice from a broker on what is the best option for them.
With mortgage rates rising and other pressures on Buy to Let landlords, you may also be considering whether selling is the best option for you — see our guide selling a Buy to Let for what to consider.
Remortgaging a Buy to Let is a similar process to switching to a new deal on a residential mortgage:
However, when it comes to Buy to Let mortgages, lenders will view your application differently than if you were applying for a residential mortgage. This is because the amount you can borrow is based on how much rent the property can generate compared to the cost of the mortgage. Lenders will look for the expected rental income to meet at least 125% of the monthly mortgage payments. For some lenders this figure is at least 145%. Bear in mind lenders may also require you to have a minimum salary too, usually £20,000 to £25,000. Find out how much you can rent your property for with our rent calculator.
We recommend starting the process of remortgaging your Buy to Let around six months before your current deal ends. This will give you plenty of time to speak to a mortgage broker and consider your options. The next step is to apply for the mortgage you’ve chosen. It then typically takes four weeks from the date you receive your mortgage offer for your Buy to Let mortgage to complete, according to our partners at award-winning mortgage brokers L&C.
If the property is leasehold it can take a bit longer to remortgage, usually around six weeks from your mortgage offer date, as extra information will be needed by your conveyancer.
For more advice, see how long does it take to remortgage.
When you’re remortgaging a Buy to Let, you’ll want to get an idea of how much you’ll be able to borrow. This will help you consider things like if you should take any equity out of the property. To find out quickly how much you will be able to borrow when remortgaging a Buy to Let, speak to fee-free mortgage brokers L&C. You can start online or speak to an expert about your mortgage needs.
There are various reasons for wanting to let out your property. These include moving in with a partner, relocating because of work, going travelling or wanting to buy a new home but still keep your current one as a long-term investment.
If you are planning to move out of your property and let it out, you’ll have three main options:
Just because you currently have a Buy to Let mortgage doesn’t mean you’re guaranteed to get a deal from a new lender. There are various reasons for this. For example, if you have a low credit score. And if the property has a short lease, of 80 years or below, you may find it harder to remortgage.
However just because one lender has turned you down, doesn’t mean you won’t be accepted elsewhere. This is because each lender has a different lending criteria. This is why it can be helpful to use a mortgage broker as they know every lender’s criteria and will be able to match you to the lender most likely to accept your personal circumstances.
If you’re having trouble getting a mortgage, see our guide Mortgage Declined? Here’s what to do next
If you don’t own a Buy to Let property but would like to, remortgaging your current home to release equity is one way you could do it. However, there are some factors to consider. For example:
Considering remortgaging? Get expert remortgage advice from award winning mortgage brokers L&C
If you have a standard Buy to Let mortgage on a property, it can’t be lived in by the owner or their immediate family. If you want to live in your Buy to Let property you will either need to remortgage and take out a standard residential mortgage or convert it to a ‘regulated Buy to Let’. The best option for you will depend on various factors including how long you are planning to live in the property for.
There are some lenders who may be unwilling to approve a mortgage based on the type of tenant you have or expect to have. These can include students and HMO (Houses in Multiple Occupation), although this may be viewed more attractively if the tenants are contractors or other professionals. But again, each lender is different so it’s wise to speak to an expert so you’re fully informed about your options.
No. Stamp duty is not payable when you remortgage your Buy to Let.
This will depend on your circumstances such as whether your costs have increased and if you can afford them if so. If sitting out the turbulence isn’t a financial option for you then yes, you’ll want to consider selling your buy to let property.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
