Many property investors remortgage with a new lender due to the benefits that it brings. Remortgaging a buy to let property is basically the process of switching your mortgage with a new lender to ensure that you are always on the most competitive mortgage deal available – the one with low interest rates and lowest fees.
Landlords and property investors usually remortgage their buy to let property as their current buy to let mortgage deal comes to an end, as it can help to save costs and increase the profitability from their rental property.
Find the best remortgage deals
If you are a property investor or landlord coming to the end of your mortgage deal and don’t want to pay the increased standard variable rate charged by a lender, you might want to consider remortgaging. Remortgaging is also worth considering if you want to change from a variable to fixed rate mortgage or capped rates, which can be a great idea when there is fluctuation in the market.
By remortgaging, you may also be able to change the amount of monthly repayments and in some cases reduce the amount you have to pay. As a result of this, you can free up additional funds if the property is empty or requiring refurbishment before it can be re-let. In some cases, it may even be possible to release equity in a valuable property to invest in new property acquisitions.
Different types of buy to let remortgages
You might not be aware that there are different types of BTL remortgages. Some mortgage lenders offer standard mortgages and tracker mortgages.
- Standard variable rate mortgage – this kind of mortgage or SVR is a variable rate mortgage that you will be moved onto once your existing fixed rate, tracker or discount mortgage ends – unless you choose to switch to a new deal. All mortgage providers have an SVR.
- Tracker rate mortgages – a tracker mortgage is a type of variable mortgage, which means that the interest rate you pay might sometimes alternate. Unlike other kinds of variable mortgages, tracker mortgages follow an external interest rate, usually the base rate set by the Bank of England.
Tracker mortgages can be advantageous as charges could be reduced. However, they carry an element of risk about them as charges could increase as well as decrease.
What to do next?
If you’re considering a buy to let remortgage, the best thing you can do is seek expert advice from a specialist buy to let mortgage broker to find you the best mortgage rates, luckily, we can do just that for you and more.
Being a specialist broker we can access the best available deals, including those which are only available to mortgage brokers and any private lending deals which are not publicly advertised.
And even if you do find the most suitable mortgage for your needs, it’s worth regularly reviewing it to ensure that you are constantly on the right deal – which is what we can do for you.
According to recent research there has been a 5% increase in the number of people taking such action since the beginning of May 2012. Some have chosen to seek the assistance of Ascot Mortgages, who offer a free initial consultation, where the different options will be thoroughly outlined. They’ll take time to identify the deal that’s best for you, based on an appraisal from across the market.
Representative of Ascot Mortgages Kevin Gibson said, “There are a number of companies that offer so called independent mortgage advice. However, they nearly all have some allegiance with one provider or another. Here at Ascot we are dedicated to treating every potential mortgage applicant with the time and commitment they deserve. We select buy to let remortgage deals based on the criteria of our customers.”
A spokesperson for monetary advice website unbiased.co.uk, “If you are looking to remortgage your buy to let property, you should seek help from a professional mortgage adviser, but don’t leave it too late as you cannot be sure whether good deals will still be available in a few months’ time.
“A mortgage adviser will recommend the best deals for you by scanning the whole of the market and will only suggest a mortgage that suits your individual circumstances.”
Why choose Ascot
There are plenty of other mortgage brokers out there that will be more than willing to remortgage for you however, we are the experts in dealing with buy to let mortgages.
We offer free initial financial advice and we pride ourselves on delivering a simple, fast, hassle-free service.
We will search the whole of the market for you to ensure that you get the best deal for your needs and circumstances.