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Buy to Let Remortgage
A Buy to Let mortgage is a new purchase for investment or refinancing an existing property that you have a mortgage on already.
Can you remortgage on a Buy to Let?
Yes, you can remortgage Buy to Let properties. There are various reasons that you would want to do that. It could be just as simple as getting a new rate if you’re at the end of your fixed rate term. Or you might be capital raising for other things, like improvements to that property, or even purchasing another property – whether that be residential or another Buy to Let. There’s a whole host of different things you would remortgage your Buy to Let for.
How do I remortgage a Buy to Let? What’s the process?
It’s the exact same process in the beginning as a residential remortgage. There may be additional documents required by the lender, for example, proof of rental income. But generally it’s just the same.
Can I be refused a Buy to Let mortgage?
The lenders will always carry out checks to ensure that you’re actually eligible for that type of loan. Chances are, if it’s a remortgage and you’ve already got a mortgage on the Buy to Let property, it should be relatively straightforward for you.
The main thing that lenders look at when remortgaging is that the rental income fits their stress testing. That’s all to do with what interest rates are now and could be in the future. But as long as the figures all add up, then there shouldn’t be any issues.
How long does it take to remortgage your Buy to Let?
It varies from case to case. If it’s a straight rate switch with the same lender, it can be tied up within a day or two – including the offer and completion. If you’re remortgaging elsewhere, with a different lender, it would probably be the same as a standard purchase mortgage – that should be completed within a few weeks.
What sort of costs are involved?
It depends on what you’re trying to achieve, as that will influence which lender you need to use. Some lenders offer free valuation and legal services and there won’t be any product fees for the switch.
If you need to use a more specialist lender to suit your situation or property, then you may have to pay valuation and legal costs. If a product fee applies, it’s usually a small percentage of the loan amount.
Do you have to pay stamp duty when remortgaging a Buy to Let?
You don’t, no, that’s only for new purchases.
What are the benefits of remortgaging a Buy to Let property?
If you’re on a fixed term at the moment and you’re coming to the end of it soon, if you don’t do anything about it you will automatically go on to the lender’s Standard Variable Rate. That will make your mortgage payments a lot higher, and because it’s variable, the rate will fluctuate with the market.
Remortgaging gives you that extra peace of mind about what your monthly payment will be going forward. You can start looking at remortgaging about six months before the end of the term, to see what rates and deals are out there.
How can The Mortgage Broker Scotland help somebody remortgage a Buy to Let?
If you want to remortgage with your existing lender it is relatively easy to switch on your own. But as Mortgage Brokers we’ve got access to a whole host of different lenders – some of which you will probably never have heard of.
By exploring all the options for you, we could save you a lot of money in the long run. There could be deals out there that are a lot cheaper than your current lender’s products. With these more specialist lenders, most of the time customers cannot access their mortgages on their own. For complex cases, a mortgage broker will assess the best possible way forward.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up with your mortgage repayments.
You may have to pay an early repayment charge to your existing lender if you remortgage.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages.
Approval number MAB 15413.