Remortgages

Landlords looking for a buy to let remortgage are finding it more difficult to find an appropriate buy to let mortgage deal. Lender’s fees have gone up and there are not as many lenders on the markets. Worldwide financial problems have affected many UK lenders and some of them are pulling away from buy to let market.

If your current buy to let mortgage is due for renewal in the next months or two, you should start looking for a remortgage. You may hear people saying that it is not worth doing anything as rates are high and fees are huge, but can you accept that without doing your sums? Buy to let is all about making profit and you shouldn’t forget it. Minimising your monthly mortgage payments will mean more income for you and you cannot ignore it.

Some experts say that gone are the days of golden buy to lets, but according to ARLA, not many professional landlords are rushing to sell their properties. They understand that buy to let is a long term investment and are happy to get by temporarily, as long as their mortgage, maintenance and insurance costs are covered by the rental income.

Today most lenders will lend you up to 75% of your property value, but you need to look harder to find a deal which will let you borrow up to 85%. Lenders still offer buy to let remortgages with free legals and free surveys, however some of them are getting cautious about property prices and only refund your valuation fee after the completion.

You should find remortgaging easier than your getting your first buy to let mortgages as you already know what you are looking for and what features are important to you.

Don’t just assume that t is not worth moving you mortgage, do your calculations. If you are finding it difficult to source an appropriate buy to let mortgage deal yourself, consider speaking to a mortgage adviser. Mortgage brokers deal with mortgages everyday and it is worth asking their opinion as they know the market. Advisors don’t always charge a fee and you may find that their advice is invaluable in your situation. Good advisor will help you to calculate whether it is worth switching you mortgage to another provider or stay with your current lender.