Buy To Let Remortgage
Buy to Let Remortgages | The Best Source of Investment Funds
There are several reasons why landlords might choose to go for buy to let remortgages. However, the main reason for looking at buy to let remortgages is to save money. If you've been in the buy to let market for a long time, you will notice that it has changed. There are dozens more lenders and deals in the market than there were ten years ago and many of them offer attractive buy to let remortgage deals.
Interest rates fluctuate and there are so many deals in the market that landlords could find their monthly payments are reduced if they take out a buy to let remortgage. This is particularly true if a buy to let landlord is paying the lender's standard variable rate. With so much choice in the BTL mortgage market, it is almost certain that landlords can improve on that rate by applying for a buy to let remortgage.
Switching an existing BTL mortgage deal can mean incurring early repayment charges on some deals, so landlords should do their sums before going for buy to let remortgages. However, many remortgage deals include free legal fees, free valuations and waived product fees as well as a better interest rate so it's worth checking whether you would be better off with buy to let remortgages.
BTL Investment Money
Another reason to remortgage is to free up additional money for investment. Choosing a buy to let remortgage may release some of the equity in your BTL property, which means more capital becomes available to make other property investments. And if you manage to reduce your monthly repayments at the same time, it is a win-win situation for a landlord.
Arranging buy to let remortgages can be as simple as arranging residential remortgages. The lender will want to see evidence of rental income and to be assured that the rental cover is enough to make interest repayments and cover the maintenance of the property. With buy to let remortgages, required rental cover is in the 125 per cent to 130 per cent range, but it can vary. As with other remortgages, you will need to show proof of income with buy to let remortgages. This can be through a regular salary or you may be able to self-certify the rental income you receive from your rental properties.
With remortgages it is worth looking at the range of BTL mortgage deals now on the market. With most BTL remortgages you can choose from interest only, capital repayment or mixed repayment methods. You can also choose among a variety of rates. These include fixed rates, which means your payment stays the same for a period of a few years, tracker rates, which track the Bank of England base rate or three month LIBOR rate for a set period, and discounted rates, which provide a discount off the standard variable rate. Whichever option you choose, you should be able to save money with buy to let remortgages.
