What is a Buy to Let remortgage?
A Buy to Let remortgage involves switching your existing Buy to Let mortgage to a new deal — either with your current lender or a new one.
Many landlords remortgage when a fixed or discounted rate is ending, but others choose to remortgage earlier to take advantage of better rates or release equity.
Why remortgage a Buy to Let property?
- Reduce monthly repayments by moving off a lender’s standard variable rate.
- Secure a fixed rate to protect against interest rate increases.
- Release equity to fund property improvements or purchase additional Buy to Let properties.
- Consolidate borrowing or simplify portfolio finances.
- Move to a more suitable lender as your portfolio grows.
How does a Buy to Let remortgage work?
The remortgage process for Buy to Let properties is similar to a residential remortgage, but with additional emphasis on rental income and portfolio exposure.
- Your lender assesses the property value.
- Rental income is reviewed to ensure it meets affordability requirements.
- Your credit profile and overall exposure are checked.
- A new mortgage offer is issued if criteria are met.
For most landlords, the process is relatively smooth. However, it can become more complex if your circumstances have changed since the original mortgage was arranged.
What can affect your remortgage options?
Potential challenges
- Reduced personal income.
- Lower rental income than originally expected.
- Property value decline.
- Increased portfolio size with one lender.
Additional borrowing
If you are remortgaging to raise funds for another property, lenders will assess affordability across your entire portfolio, not just the property being refinanced.
Key remortgaging guidelines for landlords
Shop around
You do not have to stay with your current lender. Banks and building societies regularly compete for Buy to Let business, and better deals may be available elsewhere.
Check all mortgage features
Always review the full mortgage offer carefully. A competitive fixed rate may look attractive, but early repayment charges (ERCs) can be costly if you plan to sell or refinance before the deal ends.
Look at the overall cost
The lowest interest rate does not always mean the best deal. Arrangement fees, valuation fees, and legal costs can significantly affect the true cost of borrowing — particularly for smaller loan amounts.
Why use a mortgage broker?
Going directly to a bank limits you to that lender’s products only. A whole-of-market mortgage broker can compare a wide range of Buy to Let lenders to find the most suitable option for your goals.
We search across a comprehensive panel of Buy to Let providers and match lenders to your specific circumstances — whether you’re refinancing a single property or managing a growing portfolio.
Our advice is fee-free, with no obligation.
Thinking about remortgaging your Buy to Let?
If your current Buy to Let deal is coming to an end — or you’re considering releasing equity — now is the time to review your options.
Speak to one of our mortgage brokers today for a free Buy to Let remortgage review.