Remortgage for Buy To Let (BTL)

If you own a buy to let property, you may want to know what the likelihood of securing a remortgage is. With the opportunity to release equity and secure better interest rates, a remortgage can be an attractive option for any landlord or property owner.

With so many reasons to remortgage buy to let properties, it’s important to find the right lender with the right mortgage deal.

Understanding the purpose of your remortgage could affect the success of your application.

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Remortgaging to buy another property

If you want to remortgage an existing BTL property to fund another property purchase, you should be able to do so. However, some lenders have restrictions in place. Your existing lender may not allow you to own more than four BTL properties, for example. Whilst many lenders adhere to this policy, there are mortgage companies which allow landlords to remortgage and extend their portfolios much further.

With a mortgage broker, you may be able to find a suitable remortgage deal if you want to purchase another BTL property. Many brokers, like Renew your Mortgage, have access to a number of products over various mortgage rates to help you find the right buy to let mortgage.

Similarly, if you want to remortgage your family home/property with a residential mortgage to fund a BTL property, the right lenders may be happy to do this.

Remortgaging to improve the property

Lenders are typically happy to offer you a buy to let remortgage if you’ll be using the funds to enhance, upgrade or improve the property itself. You might want to extend your BTL property, install a new electricity system or even renovate it completely.

Property improvements and regular maintenance help ensure that the BTL property keeps its value, which is good for lenders. Extensive improvements could even increase the property’s value, which is why lenders may be happy to approve applicants who want to remortgage for this reason.

Remortgaging to consolidate your debt

Many people are surprised to learn that you can remortgage a property to release equity and use the funds for purposes unrelated to the property itself. If you’re in debt, for example, releasing equity via a remortgage could enable you to consolidate the debt and secure a lower overall interest rate.

However, not all lenders are willing to lend on this basis. In addition, some lenders who will agree on a remortgage for this purpose will lower the LTV of the mortgage. In contrast, there are a number of lenders who specialise in remortgaging for debt consolidation, so it’s certainly something which you might be able to achieve.

Remortgaging from a standard mortgage to a BTL

If you own a property and want to change it to a buy to let, you’ll need to discuss this with your existing lender. Sometimes known as a let to buy, your lender may give you permission to let your property or you may need to remortgage with another lender in order to achieve BTL status.

Of course, there are many other reasons why you might choose to remortgage buy to let properties.

To find out more about securing a remortgage on a buy to let property, contact Renew Your Mortgage now on 0333 014 7688 or 07977 535838.

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