While not all lenders offer buy-to-let remortgages, many who approve an initial buy-to-let mortgage application will also provide options for remortgaging.. 

Remortgaging  a buy-to-let property is generally more expensive than remortgaging a residential one. The costs associated, including the arrangement fees, legal and valuation fees are typically higher. However, this is simply part of investment borrowing. Because it’s not your home, you’re generally less personally exposed than with a residential mortgage. 

What criteria will I have to meet? 

Like any remortgage, lenders will assess you based on their own criteria. Lender criteria can vary, so if your current lender declines your remortgage application (known as a product transfer), that doesn’t mean you won’t be approved by another buy-to-let lender.. 

Here’s what most will look for:

• Proof that your rental income is steady and that you’ve been able to keep up with mortgage payments. Generally, they expect your rental income to be at least 125% of your monthly mortgage payment. However, depending on factors like your Loan-to-Value (LTV) ratio,  your financial situation and the type of property you own, this requirement could go up. 

• That you’ve owned the property for at least 6 months - remember that if you're on a fixed-term deal and switch early, you may also have to pay an early repayment charge or other exit fees, depending on your mortgage terms.

• The type of tenants you have. For example, some lenders won’t accept benefit recipients, or students. 

When is the best time to remortgage a buy-to-let?

Other than reaching the end of your current buy-to-let mortgage deal, there are other reasons  you might consider remortgaging. For example: 

• Accessing equity - If your property’s value has increased, a lender could allow you to release equity, which may reduce your LTV ratio and give you access to more competitive deals. 

• Avoiding higher rates - If you don’t remortgage, you’ll move onto your lender's standard variable rate (SVR), which is often more expensive.

• Securing lower rates - If market rates drop, switching early-despite early repayment charges (ERCs)-could still save you money.  

When is it not a good time to remortgage a buy-to-let?

Timing is key when remortgaging a buy-to-let property. While it can often be beneficial, there are situations where it might not be the right move, or may not be possible.

Before deciding, weigh the pros and cons, and consider speaking to a mortgage broker with specialist knowledge in buy-to-let deals and investment properties. They will be best placed to provide advice and help support you in your decision. 

Some examples of when it might not be best to remortgage are: 

• When market rates are high or unpredictable - Stability is key for investment buyers, particularly those on tracker mortgages. However, if your current deal ends, your lender’s SVR is likely to be more expensive than available remortgage options, so it’s worth seeking advice. 
• If your property has reduced in value - If house prices drop, your mortgage might become a bigger percentage of the property’s value (higher  LTV), making good deals harder to find. If you owe more than your home is worth (negative equity) lenders are unlikely to approve a remortgage. 
• If switching costs too much - Fees for ending your current deal early could cancel out any savings from a better rate. Many lenders let you secure a new deal up to six months before your current one ends to avoid extra charges.

Are interest rates higher than residential remortgages? 

In general, yes—buy-to-let remortgage rates can be slightly higher than those for residential properties. This is due to the increased risk involved with investment lending. 

However, the cost difference between remortgaging a buy-to-let property and a residential property is similar to the difference in costs when purchasing these types of properties. 

How to secure the best buy-to-let remortgage rates

To secure the best buy-to-let remortgage rates, you’ll need to demonstrate that you’re a low risk borrower and a successful landlord. If your property has increased in value, you may be eligible for more competitive deals, depending on the lender’s criteria and your overall circumstances. A specialist broker like Habito can help you navigate the market and find the right option for you. 

We offer access to the whole market to help you find the best buy-to-let remortgage deals. . Our experts can provide advice and guide you through the application process, ensuring you make the most informed decision for  your investment. Whether you’re a private landlord, or a limited company with a portfolio, we’re here to provide tailored support every step of the way. 

FAQs

Can I switch a buy-to-let mortgage from interest-only to capital repayment when I remortgage? 

Yes, many lenders offer the option to switch from interest-only to  capital repayment or part and part when remortgaging. This may help meet some lenders’ requirements, however, policies vary between lenders, and eligibility will depend on their specific criteria.

Keep in mind that if you’re not nearing the end of your existing deal, some lenders may even  allow you to switch to a repayment option without the need to remortgage.