Buy to let remortgages
Buy to let remortgages made easy
Remortgaging your buy to let investment property is incredibly easy.
Just call us on 0800 316 5756 for a quick initial discussion. Our buy to let specialists will be able to provide the best buy to let remortgage terms for you.
You can:
- capital raise by increasing your buy to let mortgage
- change from a variable to fixed rate (or vice versa)
- change the mortgage term
Why Remortgage your buy to let property?
There are two main reasons for re-mortgaging:
- Pound for pound re-finance in order to improve on existing terms.
- Re-finance, plus additional lending on better terms.
Let us look at the two situations.
1. Pound for Pound Buy to let remortgage
You entered the buy to let market with an interest-only mortgage of £85,000 on a property worth £100,000. Over the past years the value of your property increased in value and it is now worth £200,000 with £85,000 still owed on the mortgage. When you arranged the loan, hopefully you would have managed to obtain a Buy to Let mortgage on some kind of initial preferential terms; say for two or three years. At the end of this initial period, in most cases the loan will revert to the lenders standard variable rate. That of course is more expensive, and your own lender will be reluctant at best to do anything about this for you. What can you do?
Well you could leave things exactly as they are!
OR
You could re-mortgage and save yourself some money!
There is only one sensible option; so contact one of our team to
find out how much you can save.
2. Re-Mortgage plus additional lending
By this time you have probably noticed that you have £ 115,000 of equity locked up your Investment property. You have two choices available:
- Let it sit there and do absolutely nothing for you
OR - Make it work for you in some kind of beneficial way.
How?
Well, why take out expensive, short term, high rate loans when you could secure a better rate loan over a longer period. NB Remember this is an investment, you don’t live there and therefore you are not risking the roof over your head!
OR
You could extract some equity and expand your portfolio…you know that works.
For advice on buy to let remortgages please contact our
specialist buy to let mortgage brokers on 0800 316 5756.
Alternatively you could put the property on the market. However, if
you intend sell it is important to factor Capital Gains Tax in to
your calculations.
Arguably the most savvy option is to consider remortgaging. If
your rent and property value have doubled, you are now in a position
to double your mortgage. This would raise £85,000; there's no
Capital Gains Tax to pay and the property is still yours. Capital
gains tax will still be payable when you sell the property.
How you use the money is up to you, but if you set some aside as a
deposit on another buy to let property you have the beginnings of a
property portfolio.
Let Property Strategies are Property Consultants and Mortgage Brokers. All views expressed are those of Let Property Strategies and the information is believed to be correct at the time of issue. The examples shown within this site are for illustrative purposes only, exclude repayment of capital and allowance for void periods and should not be construed as any form of recommendation. Interest rates may vary and taxation, which has not been included in any example, will depend on individual circumstances. The value of investment property and rent levels can go down as well as up. Investors are advised to seek appropriate legal advice before entering in to any contractual agreement. February 2009
Your home may be repossessed if you do not keep up repayments on your mortgage. Written details on request. Loans subject to status
