Updated Date: 2nd November 2020

A buy to let remortgage is a mortgage deal to let out your property that you can switch to when your existing mortgage deal ends. Whenever you switch to a new mortgage, it's called 'remortgaging'.

You might hear a buy to let remortgage being called a 'BTL remortgage'.

You might want to remortgage if buy to let remortgage rates are lower than the rate you have at the moment. In that case, switching would make your monthly repayments lower, until your deal ends.

How to get the best buy to let remortgage


This buy to let (BTL) remortgage comparison shows the deals you could switch to if you already have a buy to let mortgage and you want a new deal.

Compare buy to let remortgages to find the best buy to let remortgage deals for you. Look first at the initial rates included in the table above. Then choose the lowest rates available for the term you want.

But watch out, too, for the varying fees charged with different buy to let remortgage deals. You can use our comparison to check if a mortgage deal has any fees and charges.

The buy to let remortgage comparison table shows you:

  • which lender each buy to let remortgage is with

  • the maximum LTV

  • the initial rate

  • the subsequent rate

  • the overall cost.

You can then click 'see deal' for further information on each product.

When it's time to remortgage a buy to let property that you own, you might decide you'd like some help deciding which is the best buy to let remortgage for you. You could speak to a buy to let mortgage broker who can offer financial advice on this.

What buy to let remortgage rates could you get?

When it's time to remortgage, buy to let mortgages come with the same rate options as any other type of mortgage.

Of course, you'll be looking to find the best BTL remortgage rates out there. You'll need to decide what kind of buy to let remortgage you're looking for.

Here are the options you'll usually have to choose between:

  • Fixed rate: With a fixed rate remortgage, your mortgage rate won't change during the term. This means you'll pay the same each month until your deal ends.

  • Variable rate: With this kind of remortgage, your rate follows the standard variable rate (SVR). The SVR is set by the lender based on the Bank of England base rate and the cost of offering a mortgage.

  • Tracker: This type of rate stays above the Bank of England base rate. This means it could go up or down at any time during your mortgage deal depending on when the base rate changes.

  • Discounted rates: This is a fixed discount on the lender's SVR. If the SVR changes, so will the rate you pay.

  • Stepped rates: The rate you get increases over the term of the deal. For example, a three-year stepped deal starting on .5% could increase to 2% in the second year and 2.5% in the third year.

  • Interest only: If you're doing a buy to let remortgage, interest only deals can be more affordable. An interest only remortgage means you're only paying back the interest you owe. You're not chipping away at the balance.

Here's some more information on the different types of mortgage rates you could look for.

Once you've decided which type you want, you'll be able to look specifically for the best buy to let remortgage rates for that type.

What kind of rates can I expect on a buy to let remortgage?

Rates to remortgage a buy to let are usually higher than they are with normal residential mortgages.

Lenders see you as a bigger risk because if something happened which meant you didn't have paying tenants, you might not be able to make your repayments.

To get the best deals to remortgage a buy to let, you'll also usually need to own more of the property, because LTV rates aren't as good. You tend to need at least 25% of the property's value as a deposit, which means you will be looking at a maximum LTV of 75%.

The bigger deposit you have to put in, the better the buy to let remortgage rates you'll be offered. You'll also have a better chance of being offered the cheapest buy to let remortgage rates if you've got a good credit history and don't have a lot of debt.

How to remortgage a buy to let property

When your current BTL mortgage is coming to an end, it's time to find a cheap remortgage for your buy to let. There are a few ways to go about this.

You'll need to find the best BTL remortgage deals and arrange one. There's a lot of choice if you wish to remortgage a buy to let property.

First, you'll need to decide which type of BTL remortgage you would like, in terms of the rates. Then you'll need to see which remortgage buy to let deals are available to you.

The rates you are offered will depend on your situation, considering factors such as how much you're borrowing, the value of the property and so on. You could use a buy to let remortgage calculator to get an idea of what different rates might mean for you and what you could afford.

It's important to check the maximum loan-to-value (LTV) rate on the buy to let remortgage you're looking at. That shows the difference between the property's value and how much deposit you've got. For example, if the remortgage deal has a maximum LTV of 70%, you'll need to put in 30% of the property's value yourself. This would usually come from the equity you have in the property.

The best buy to let remortgage deals will offer low rates, low fees or no fees, and low or no early repayment charges. You'll probably want to remortgage in a few years, so you need to make sure that you won't be charged a high fee if you change to another product or provider.

If you want to remortgage a buy to let mortgage, the number of deals available can sometimes seem confusing. To help, you can compare BTL remortgage rates using our comparison table at the top of this page, or speak to a buy to let mortgage broker.

Can I remortgage to a buy to let mortgage?

You may have a residential mortgage and want to change it into a buy to let mortgage. Perhaps you're moving away, or moving in with your partner, and you're going to keep your property to rent out.

In this case you'd need to remortgage to a buy to let mortgage deal. Many residential mortgages have a clause that stops you from renting the property out, unless you are renting to family and can switch to a consumer buy to let mortgage.

Find out more about buy to let mortgages here.

If you don't have a mortgage yet...

You can find out how buy to let mortgages work here.

Buy to let remortgages FAQ

Q

Do I have to remortgage?

A

No, but if you have reached the end of your existing term, you could save money on your monthly repayments by switching deals or lenders.

Q

Can I remortgage if I do not have any equity in the property?

A

Lenders will only let you remortgage if you have at least 20% equity in the property.

Q

Can I apply for a buy to let remortgage deal online?

A

Yes, but depending on the lender you choose you may need to apply in a branch.

Q

Does it cost anything to move my buy to let mortgage?

A

There are several charges you could face, from both your existing and new lender. Check before you apply to ensure you are prepared.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include every mortgage in the UK you can apply for directly from the lender. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.