Every professional landlord understands that profit margins are tight if a buy to let portfolio is not managed correctly, in order to save money it’s important that you are prepared to re-mortgage your properties when the time is right.
Re-mortgaging a buy to let property follows pretty much the same process as a residential re-mortgage, for the majority of landlords it’s a pretty straightforward procedure however if your circumstances have changed since the original mortgage was arranged it can prove more difficult. For example, your income has been reduced or the properties value has decreased or perhaps you wish to re-mortgage to buy another property.
Whatever your reason is for re-mortgaging there are some simple guidelines you should always follow.
Shop Around – Remember you don’t have to stick with your current lender. Banks and Building societies will always be fighting for your business so spend a little time searching the market for the best deals available.
Check all the Features – Study your mortgage offer carefully and make sure you fully understand all of the implications to make sure it’s suitable for your needs. There’s little point in securing a great 5 year fixed rate deal if you intend to sell the property 3 years down the line as you may incur hefty ERC’s ( Early Repayment Charges ).
Check the overall cost – Just because a product boasts a great rate doesn’t necessarily make it the best deal for you. A lot of products with the lowest rates will include arrangement, valuation and booking fee’s, when all of these charges are taken into consideration the offer may not seem as appealing espeacially if you are only borrowing a small amount.
Find a Good Mortgage Broker – Find a mortgage broker who will work for you and who isn’t tied to a particular lender. When you go directly to a Bank or Building society they will only offer you their own range of products by failing to check the market you could be loosing out on a lot of money. Mortgage Adviser NI will search through a comprehensive range of Buy to Let providers and find the most suitable product for you and we will never charge you a fee for our services.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority