It may be time to review your mortgage if your current deal is ending. You may also want to review it if the rent has changed or you plan to release equity.
The right next step depends on the rental property, loan-to-value, monthly payments and what you want the investment to do next.
What is a buy-to-let remortgage?
A buy-to-let remortgage in the UK lets you replace the mortgage on a rental property with a new deal. You can stay with your current lender or move to a different one.
You might remortgage to change rate, reduce monthly repayments, release equity or change the mortgage structure. If you need the wider basics first, our buy-to-let mortgages page explains how buy-to-let borrowing works.
Before you remortgage your buy-to-let
CURRENT DEAL
Check the end date and charges
Early repayment charges (ERCs), exit fees and your deal end date can affect when you switch.
RENT
Check the rent supports borrowing
The lender may test the rent against the mortgage using its own rental calculation.
LTV
Know your loan-to-value
Your property value and mortgage balance set the loan-to-value (LTV), which can affect rates and lender choice.
GOAL
Decide what you want to change
You may want a new rate, lower payments, extra borrowing or a mortgage deal that better fits your plans.
Why remortgage your buy-to-let?
RATE
Review the rate and mortgage cost
Compare fixed and variable rate options before your current deal ends. This can help you avoid moving onto the lender’s standard variable rate.
EQUITY
Release equity from the property
You may be able to raise funds for another buy-to-let property, improvements or wider portfolio plans.
STRUCTURE
Change how the mortgage works
You can review interest-only mortgage and repayment options if your current structure no longer fits the rental.
If cash flow is the main concern, the mortgage is only one part of the picture. Improving rental income from a buy-to-let property can also involve the rent, void periods, property condition and running costs.
Product transfer or full remortgage?
PRODUCT TRANSFER
Stay with your current lender
You switch to another product from the same lender. This can involve fewer checks, but you only compare that lender’s range.
FULL REMORTGAGE
Move to a new lender
You compare a wider range of buy-to-let remortgage deals. The new lender may carry out rental checks, a valuation and legal work.
Buy-to-let remortgage criteria
Rental income
The rent may need to cover the mortgage payment by the lender’s required margin.
Loan-to-value
The mortgage balance and property value affect your LTV, rates and lender options.
Property and ownership
Property type and whether you own it personally or through a company can change the criteria.
Landlord and credit profile
Some lenders review landlord experience, credit scores, existing debts and wider rental properties.
If you own several rental properties, the lender may ask for a portfolio schedule. This usually shows property values, mortgage balances and rents. Limited company cases may need company and director information too.
How to remortgage a buy-to-let
Review your current mortgage
Check the deal end date, current balance and any early repayment charges before comparing new options.
Check the property and rent
Confirm the likely property value and current rental income so you can assess the loan-to-value and borrowing.
Compare the new mortgage
Compare the rate, fees, monthly repayments and lender criteria rather than looking at the headline rate alone.
Complete valuation and legal work
A full remortgage may involve a valuation, underwriting and legal work before the new lender releases the funds.
Buy-to-let remortgage rates
Buy-to-let remortgage rates can vary with LTV, rental income, property type and whether you want extra borrowing. Product fees also affect the overall mortgage cost.
A low headline rate can look attractive, but the better remortgage deal depends on more than the rate alone. Compare the fees, monthly repayments and lender criteria alongside the rate, and make sure the property fits the lender’s rules.
Some landlords prefer a fixed rate mortgage because it makes monthly payments easier to plan, while variable rate mortgages can rise or fall over time. When comparing buy-to-let remortgage rates, UK landlords should look at how each option would affect their monthly repayments as well as the headline rate.
A buy-to-let remortgage comparison should also include fees, lender criteria and the total mortgage cost. The best buy-to-let remortgage rates are only valuable if the deal fits the property, rental income and what you want to achieve next.
Check the remortgage numbers
Use the buy-to-let remortgage calculator route to test the rent, borrowing and potential yield before you switch.
Remortgaging to release equity
If the property has increased in value or the mortgage balance has fallen, you may have built up equity. You may be able to release some of it when you remortgage.
Extra borrowing can help fund another buy-to-let property or improvements, but it also increases the debt secured against the rental. The rent must still support the higher balance, and the new LTV must fit the lender’s criteria.
WORTH KNOWING
Visible equity is not the same as available borrowing. The lender still checks the rent, property value and loan-to-value.
Interest-only and ownership structure
A remortgage can be a useful time to review an interest-only mortgage against repayment. Interest-only can keep mortgage payments lower, but the balance remains outstanding, and you need a repayment plan.
If you are considering personal or limited company ownership, compare the mortgage, tax and legal position before making changes. Moving a personally owned property into a company is not usually a simple remortgage. Our page on buying personally or through a limited company explains the wider differences.
What a remortgage can look like
Suppose a rental property is worth £280,000 with a £160,000 mortgage. That is about 57% LTV, leaving around £120,000 of equity before lender checks.
Property value
£280,000
Mortgage balance
£160,000
Equity before checks
£120,000
The lender still decides how much you can borrow and whether the rent supports the new mortgage. Fees, monthly repayments and early repayment charges can also change the overall cost.
Figures are illustrative only. Actual borrowing, repayments, rent, equity release, tax, fees and lender criteria depend on the property, mortgage and your circumstances.
How Muttuo Mortgages can help
We can review your current buy-to-let and compare remortgage options before the deal ends.
Review the rent, loan-to-value and equity position
Compare buy-to-let remortgage options from more than 100 lenders
Check rates, fees and borrowing against your wider property plans
Compare your remortgage options
Explore a new deal, equity release or a different mortgage structure.
Your property may be repossessed if you do not keep up with your mortgage repayments.
The Financial Conduct Authority does not regulate some buy-to-let mortgages.
Buy-to-let remortgage questions answered
When should I remortgage my buy-to-let?
Start reviewing options several months before your current deal ends. This gives you time to compare rates, fees and any early repayment charges.
Can I remortgage a buy-to-let to release equity?
It may be possible if the property value, rent and loan-to-value support the extra borrowing.
Can I get a buy-to-let remortgage with bad credit?
Some lenders may consider applications with previous credit issues. Your options depend on the type, amount and age of the credit problem, as well as the property and rental income.
Can I switch to interest-only when I remortgage?
It may be possible if the lender, property, rent and loan-to-value fit. You will need a suitable plan to repay the balance at the end of the term.
Are there no-fee buy-to-let remortgage deals?
Some products may have no arrangement fee, but other costs can still apply. Compare the rate, fees and total mortgage cost rather than one fee in isolation.
