If the question is, can I remortgage a buy to let property? Then the answer is \u2018yes\u2019. You might even be able to remortgage a buy to let within 6 months of purchasing.\n\nGetting the best buy to let (BTL) remortgage for you depends on your situation and a number of key factors, covered in this article:<span style="text-decoration: line-through;">\n<\/span>\n<ul>\n \t<li><a href="#remortgage-impacts-btl">How the purpose for the remortgage impacts the best BTL deals<\/a><\/li>\n \t<li><a href="#personalname-or-limited">Borrowing in personal name or Ltd company<\/a><\/li>\n \t<li><a href="#ltv-impacts-best-deals">How loan to value impacts the best BTL deals<\/a><\/li>\n \t<li><a href="#btl-remo-bad-credit">Buy to let for people with bad credit<\/a><\/li>\n \t<li><a href="#personal-income-btl-deals">How your personal income impacts the best BTL deals<\/a><\/li>\n \t<li><a href="#rental-income-btl-deals">How the property rental income impacts BTL deals<\/a><\/li>\n \t<li><a href="#tenant-type-btl-deals">How the tenant type impacts the best BTL deals<\/a><\/li>\n \t<li><a href="#property-type-btl-deals">How the property type impacts BTL deals<\/a><\/li>\n \t<li><a href="#best-rates-btl-remo">Who offers the best rates?<\/a><\/li>\n \t<li><a href="#talk-to-expert-btl">Talk to an expert<\/a><\/li>\n<\/ul>\nIf the question is, <em>\u201ccan I remortgage a buy to let property?\u201d<\/em> Then the answer is of course \u2018yes!\u2019. You might even be able to remortgage a buy to let within 6 months of purchasing, in certain scenarios.\n<h2 id="remortgage-impacts-btl">How the purpose for the remortgage impacts the best BTL deals<\/h2>\nThe reason you are refinancing your buy to let property can have a big impact on which lenders and deals you\u2019ll be eligible for, as those looking to release equity (for home improvements or for deposit to buy another property) may be treated differently to those just looking to switch their buy to let mortgage like-for-like, perhaps to get a better rate.\n<h3>If you are releasing equity from a BTL<\/h3>\nIf your question is, can I remortgage my <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/btl-and-equity-release\/">\u2018buy to let\u2019 to release equity?<\/a> Then the quick answer is \u2018yes\u2019, with some provisos of course.\n\nThe reason for wanting to release the money can play a part in how much a lender will be prepared to lend, if at all.\n<h4>Remortgage a buy to let for deposit<\/h4>\nOn occasions a landlord may want to increase their property portfolio, and \u2018buy to let\u2019 remortgages are one way of releasing equity to cover a deposit or partial payment.\n\nAlthough a relatively common practice, there are various rules and regulations in place that can restrict landlords, such as the rules around affordability if the landlord is a higher rate tax payer; or is considered a portfolio landlord (usually when owning over 4 BTL properties), or perhaps where lenders limit the maximum number of BTLs a borrower can own (most 4, some up to 10 and a few unlimited), to reduce the risk associated with owning a larger portfolio of property.\n\nOn the other side, it\u2019s also quite possible to remortgage your current home to purchase a \u2018buy to let\u2019; releasing equity in this way is something we see a lot of. Whether a full remortgage, a second charge, or a portfolio mortgage is the right thing depends on various factors that your specialist advisor will work through with you.\n<h4>Release money from BTL for property improvement<\/h4>\nMost lenders are happy to remortgage to release equity for your buy to let property if it\u2019s to pay for investment in it, especially if this is likely to increase the value of the property. if it\u2019s in an area that is on the up and up and the money could be used to upgrade the property to take advantage of increased rents in the area.\n<h4>Release money from BTL for Debt consolidation<\/h4>\nSome lenders limit the LTV of the mortgage they\u2019ll lend if the funds being released are for <a href="\/remortgages\/debt-consolidation-mortgages\/">debt consolidation<\/a>, and other lenders will even not lend at all if for this purpose, due to the increased risk of securing unsecured debt, and for the type of borrower who has amassed debts in the first place.\n\nThat said, for many releasing equity in your buy to let to consolidate debt is a simple way of consolidating a number of debts into a single more manageable amount and can considerably reduce your outgoings.\n\nDoing this has saved many borrowers a considerable amount of monthly interest payments, but it\u2019s important to consider turning repayable unsecured debts into interest only secured debts can be putting the property at risk, and there should always be a repayment strategy in place.\n<h4>Release money from BTL for to buy out a partner<\/h4>\nIf you own a buy to let mortgage, using the equity to buy out another party from that mortgage, or perhaps even from another property, is certainly a viable option.\n\nIn general, this is acceptable with most BTL lenders and involves a re-application to be assessed in your own name, and this is the case whether you want to stay with the same lender or move to a new one.\n\nUsual LTV limits apply up to 75% with most lenders, 80% with a few others, and even up to 85% with a select number of specialists.\n<h4>Release money from BTL for commercial purposes<\/h4>\nYou could consider remortgaging a buy to let property to take advantage of a commercial opportunity, such as a commercial building or business venture.\n\nBear in mind that releasing equity for commercial \/ business purposes like this, is only acceptable with some lenders, and some of those that do can limit the LTV.\n<h4>Switching to a better buy to let remortgage interest rate<\/h4>\nAnother reason to remortgage your buy to let (rather than let it slip onto the lenders\u2019 standard variable rate, or just accept whatever they offer you at the end of your term), is to shop around and try to take advantage of the best \u2018buy to let\u2019 remortgage deals available in the market.\n\nInterest rates fluctuate, so it makes sense to get the best deal by regularly reviewing your products before the end of their tie in period and compare buy to let remortgage rates across the market.\n\nAnd the best way to do this? Through one of the expert advisors we work with of course!\n<h3>Can I remortgage my home to a buy to let?<\/h3>\nThis happens more frequently than you\u2019d think and is known as <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/let-to-buy-mortgages\/">\u201cLet to buy\u201d.<\/a>\n\nMany people find themselves \u2018accidental landlords\u2019 in this way and can often happen when someone moves in with a partner or perhaps inherits a bigger property leaving their old property with the original standard mortgage to be rented out without a buy to let mortgage.\n\nIt can be solved either by asking your lender for \u2018consent to let\u2019, or by remortgaging away onto the best BTL deal you can get.\n\nIt\u2019s important to remember that failure to notify your lender that you\u2019re letting out your home without a buy-to-let remortgage, would be considered a breach of your contract and some could demand full and final repayment, which would be financially disastrous.\n<h3>Can I release equity from buy to let for any other purpose?<strong>\n<\/strong><\/h3>\nMany people ask our advisors, can I release equity from my buy to let property for anything? The truth is, you can use buy to let equity release for just about any worthwhile (and legal) purpose, from renovations, a new car, holiday or even a wedding.\n<h2>If you are remortgaging your BTL to a main residential mortgage<\/h2>\nThere are all kinds of reasons why a property owner might wish to change from a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/switching-buy-to-let-to-residential\/">buy to let to a residential mortgage<\/a>. Perhaps you have split with your significant other and you now want to live in the buy to let property you own.\n\nFor others, it\u2019s a move that might make sense down the line when the time comes to downsize. Maybe you own a smaller buy to let property that you can move into when you\u2019ve sold your main home (or rented that one out for a higher return).\n\nSo, if you\u2019re one of the many people asking \u201ccan I change my buy to let mortgage to residential?\u201d Get in touch and the expert advisors we work with can help you choose the best course of action.\n<h2 id="personalname-or-limited">Is the property in personal name or a Ltd company?<\/h2>\nLenders can offer different deals depending on whether you\u2019re an individual or a limited company.\n\nFor investors with small or large portfolios, buying property through a Ltd company can offer significant tax benefits, especially for higher rate tax payers.\n\n<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/mortgages-for-limited-companies\/">Ltd company mortgages<\/a> are perfect for those who want to buy property as a collective rather than just two individuals, and who wish to shield \u00a0themselves from personal liability should things not go according to plan.\n\nLending criteria for companies differs from individual mortgages in a number of ways, and different company structures are treated differently.\n\nIf a trading company wishes to buy a property, the lender will usually want to see two years of accounts showing income and net profitability. The lender may also require a personal guarantee from the directors.\n\nIn the case of a SPV (Special Purpose Vehicle), which is a limited company specifically set up to purchase buy to let properties. Again, most lenders will require a personal guarantee from the directors to cover the debt.\n\nYou\u2019ll also need a SIC (Standard Industrial Classification) which specifies the what type of business the company is involved with.\n<h2 id="ltv-impacts-best-deals">Property value \/ Current loan amount and equity available (loan to value LTV)<\/h2>\nAll lenders are different and the LTV (Loan to Value) can vary considerably. It also depends on how much you want to borrow and how much equity you have in the property.\n\nFor instance if your property is worth \u00a3250,000, with \u00a3200,00 in equity and you want to borrow \u00a3100,000 over 25 years \u2013 then your LTV is 40%.\n\nBut if you wanted to borrow \u00a3160,000 \u2013 then your LTV would be 65%.\n\nThere are lenders who will grant remortgages up to 90% and a few who may lend even more. The advisors we work with are whole market, so they have access to the right lenders to suit your particular circumstances.\n<h2 id="btl-remo-bad-credit">Buy to let remortgages for people with bad credit<\/h2>\nOver the years we\u2019ve assisted in hundreds of remortgages for people with bad credit history. Almost every time it\u2019s the same story - customers come to us after being declined by a lender, or even worse, having been turned away by their broker.\n\nBelow is a list of potential credit issues you may be faced with as a borrower, and later on we delve into each subject in a bit more detail, discuss the implications of each, and how you go about remortgaging with <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/">bad credit<\/a>.\n<ul>\n \t<li>Adverse credit overview<\/li>\n \t<li>Low credit score<\/li>\n \t<li>Mortgage Arrears<\/li>\n \t<li>Defaults<\/li>\n \t<li>County Court Judgements (CCJs)<\/li>\n \t<li>Individual Voluntary Arrangements (IVAs)<\/li>\n \t<li>Debt Management Plans (DMPs)<\/li>\n \t<li>Bankruptcy<\/li>\n \t<li>Repossession<\/li>\n<\/ul>\nThe fact of the matter is, yes, <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/remortgage-with-bad-credit\/">bad credit remortgages<\/a> can be harder to arrange, which often results in otherwise eligible customers being treated badly, messed around by brokers or lenders who don\u2019t (or won\u2019t) understand their circumstances, and sometimes they are even misinformed and told that it\u2019s not possible to get a mortgage.\n\nFortunately, the advisors we work with offer an expert service for customers of all backgrounds. How do we know? Because we train them ourselves, and only license them to handle your type of enquiry, provided they prove they know exactly what they are doing.\n<h2 id="personal-income-btl-deals">How your personal income affects a buy to let remortgage<\/h2>\nEvery lender is different and uses different criteria when working how much they will lend you.\n\nIf you\u2019re a first time landlord, most lenders have a minimum income requirement of \u00a325,000 per annum for a buy to let , but there are a few lenders who may accept less.\n\nEssentially, it\u2019s your basic wage and a number of other types of income, which may include:\n<ul>\n \t<li>Bonuses<\/li>\n \t<li>Commission<\/li>\n \t<li>Benefits<\/li>\n \t<li>Second jobs<\/li>\n \t<li>Investments<\/li>\n \t<li>Dividends<\/li>\n \t<li>Etc<\/li>\n<\/ul>\nThey may also take into account outgoings, such as:\n<ul>\n \t<li>Debt repayments (car lease, credit cards etc)<\/li>\n \t<li>Contacts (phones, internet etc)<\/li>\n \t<li>School fees<\/li>\n \t<li>Gas\/electricity<\/li>\n \t<li>Essentials (food, clothing etc)<\/li>\n<\/ul>\nThese will be used to work how much you\u2019ll have to cover the new mortgage payment, and some might also consider your ability to cover the mortgage payment if the rate was to rise.\n<h2 id="rental-income-btl-deals">The property rental income<\/h2>\nThe most common question we get with people wanting to get into a buy to let property is, how much rental income can I expect? This depends on many factors including the size and condition of the property and the biggie \u2026 location. Buy to let mortgages are usually only approved if the lender thinks they are affordable. This is balanced against your personal income and the expected rent, and the value of the property.\n\nMany lenders require that the annual rental must be at least 125% of your annual mortgage repayments.\n\nAs an example, if you\u2019re repayments are \u00a315,000 a year, then the rent should be no less than \u00a318,750. If you want to find out what rental properties are going for in the area you intend to buy in, a good place to start is by checking the local estate agents or Zoopla.\n\nLenders use \u2018<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/buy-to-let-mortgage-calculator\/">Buy to let\u2019 stress tests<\/a> as a way to check that you have the ability to repay the interest on the mortgage.\n\nFor instance, if you have a \u00a3150,000 mortgage and a 5.5% interest cover rate is applied, this brings your monthly interest payments to \u00a3687.50. The equation is 150,000 x 5.5% = 8250 \/ 12 months = 687.50.\n\nBy factoring in the rate for the rental income of 125%, for the purposes of stress testing, this brings the real monthly costs to \u00a3859.38.\n<h2>Buy to let landlords face remortgage crunch<\/h2>\nOriginally the benefits of \u2018buy to let\u2019 tax relief were quite attractive; however, landlords were hit hard by the new tax rates imposed in 2017 on the money they have to pay.\n\nWhen it comes to buy to let mortgages, almost all lenders require that your rental income covers, not just the mortgage, but other costs as well.\n\nThese include repairs, maintenance, agent\u2019s fees and mortgage interest \u2013 As a buy to let costs guide, a recent study estimated the average costs involved with buying a \u2018buy to let\u2019 house to be around \u00a38,359 a year.\n\nGenerally, the rent required had to be high enough to cover the mortgage payment by 125%, which assumes a nominal interest rate of 5%, but some lenders can ask that rental income be up to 145%.\n<h2 id="tenant-type-btl-deals">How tenant types can impact the best BTL deals<\/h2>\nThe following tenant types can be viewed less favourably by lenders\n<ul>\n \t<li>Students<\/li>\n \t<li>Council tenants<\/li>\n \t<li>Tenants on benefits<\/li>\n \t<li>HMO (Houses in Multiple Occupation)<\/li>\n \t<li>Sitting tenants<\/li>\n<\/ul>\nThere are lenders who may unwilling to approve a mortgage based on the type tenants. While students are acceptable to a few lenders, their reluctance comes from a reputation that students have for partying and damage.\n\nThose on benefits can be seen as a risk, but less so if they are on disability benefits.\n\n<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/hmo-mortgages\/">HMO\u2019s<\/a> can be more attractive if the tenants are contractors or other professionals.\n\nSitting tenants can be a major stumbling block to a BTL mortgage, because under the Rent Act of 1977, they have the legal right to remain in the property for life and can even pass on the right to a family member upon their death. They also have the right to a \u2018fair rent\u2019 which is often well under the market value. For this reason, lenders are reluctant to agree a mortgage as they classify them as a poor risk.\n<h2 id="property-type-btl-deals">How the property type impacts BTL deals<\/h2>\nLenders are more comfortable with standard brick with slate roof homes, and any deviation from non-standard construction can affect whether you get the best deal or not. These include:\n<ul>\n \t<li>Flats<\/li>\n \t<li>High rise buildings<\/li>\n \t<li>Thatched roofs<\/li>\n \t<li>Stone construction<\/li>\n \t<li>Tin roofs<\/li>\n \t<li>Felt roofs<\/li>\n \t<li>Wooden framed homes<\/li>\n \t<li>Metal framed homes<\/li>\n \t<li>Solar panels<\/li>\n<\/ul>\nAnd there are loads of other property types that may affect which lenders will consider your application. Talk to one of the advisors we work with for the right advice on getting the best deal, whatever property type you have.\n<h2 id="best-rates-btl-remo">Who offers the best buy to let remortgage rates?<\/h2>\nThere are a number of remortgage \u2018buy to let\u2019 lenders on the market and they all have different criteria when it comes to remortgaging a \u2018buy to let\u2019.\n\nThe best rate available to you is dependent on a number of factors including:\n<ul>\n \t<li>Your credit history<\/li>\n \t<li>Your income<\/li>\n \t<li>The size of your deposit (higher deposits attract lower interest rates)<\/li>\n \t<li>How much equity you have<\/li>\n<\/ul>\nThe mortgage experts we work with have total access to the market, which means they can find the best buy to let remortgage rates to suit you and your circumstances.\n<h2>Buy to let remortgage rates in the UK<\/h2>\nAt the moment buy to let rates are relatively low, but you need to consider the future and the implications of interest rises, so it\u2019s important to consider all the costs associated with owning a \u2018buy to let\u2019 such as wear and tear, accidental damage, even income tax and agents\u2019 fees that will need to be covered by the rent you receive.\n\nProposals put forward by the Prudential Regulation Authority have recommended increasing the criteria for \u2018buy to let\u2019 mortgages, as they believed that the \u2018buy to let\u2019 sector was at greater risk from interest rate increases and they felt many landlords would not have enough rent to cover the aforementioned costs.\n\nThis is why it is vital that when you remortgage a \u2018buy to let\u2019 you get the very best specialist advice available.\n\nThis is where the expert mortgage advisors we deal with come in. They\u2019ll use all their expertise and experience to find you the cheapest \u2018buy to let\u2019 remortgage deal on the market.\n<h3>Look for the total costs not just rates<\/h3>\nYou need to bear in mind that the lowest interest rate, doesn\u2019t necessarily mean the best deal.\n\nYou have to look at the overall cost including early repayment charges and the setup costs for the new mortgage, which can be quite hefty. In fact, any savings can be wiped out in fees alone.\n\nAgain, this is where an expert advisor comes in, guiding you through the traps and pitfalls so you can remortgage a buy to let property and end up with the best possible outcome.\n<h3>Higher fee and better rate, or lower fee and higher rate?<\/h3>\nFor instance if the loan is relatively low, say around the \u00a3100,000 mark, it might be best to go for the lender with the lower fees, but higher interest. Conversely, if your loan will be around \u00a3200,000 or more, then the higher fee with the lower interest rate might be more financially rewarding.\n<h3>Let\u2019s compare a \u2018buy to let\u2019 remortgage deal and rates<\/h3>\n<strong>Hypothetical Example<\/strong>\n\nLender A offers a 2yr fixed rate at 3% with \u00a31000 in fees.\nLender B offers a 2yr fixed rate at 3.5% with \u00a399 in fees.\n\nSo which remortgage \u2018buy to let\u2019 interest rates offers the most savings?\n\nFor a \u2018buy to let\u2019 remortgage of \u00a3105,000:\n<table style="height: 84px;" width="574">\n<tbody>\n<tr>\n<td style="text-align: center;" width="201">Lender A<\/td>\n<td style="text-align: center;" width="201">2 yr fixed rate at 3%<\/td>\n<td style="text-align: center;" width="201">Total Cost<\/td>\n<\/tr>\n<tr>\n<td style="text-align: center;" width="201">105k + 1k fees<\/td>\n<td style="text-align: center;" width="201">265 pm approx.<\/td>\n<td style="text-align: center;" width="201">\u00a37,360<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style="height: 88px;" width="581">\n<tbody>\n<tr>\n<td style="text-align: center;" width="200">Lender B<\/td>\n<td style="text-align: center;" width="200">2 yr fixed rate at 3.5%<\/td>\n<td style="text-align: center;" width="200">Total Cost<\/td>\n<\/tr>\n<tr>\n<td style="text-align: center;" width="200">105k + 99 fee<\/td>\n<td style="text-align: center;" width="200">307 pm<\/td>\n<td style="text-align: center;" width="200">\u00a37,467<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nSavings made by taking the lower rate with higher fee\u00a0<strong>= \u00a3107<\/strong>\n<h4>The best deal over the term depends on the tipping point<\/h4>\nThe \u201ctipping point\u201d is the point at which the size of the loan makes more sense to take a different deal. So, in this example, if the mortgage was much under \u00a3105k then it will most likely be best to take the mortgage with lower fees.\n\nSome lenders even offer \u2018buy to let\u2019 remortgage with no fees, where the savings at lower loan amounts can be even more substantial.\n<h4>When is it a good idea to pay a fee?<\/h4>\nGenerally, as the loan amount becomes higher, the savings made with the lower rate and higher fee increase dramatically.\n\n<strong>Hypothetical Example<\/strong>\n\nFor a buy to let remortgage of \u00a3200,000:\n<table style="height: 96px;" width="461">\n<tbody>\n<tr>\n<td style="text-align: center;" width="200">Lender A<\/td>\n<td style="text-align: center;" width="200">3% rate<\/td>\n<td style="text-align: center;" width="200">Total Cost<\/td>\n<\/tr>\n<tr>\n<td style="text-align: center;" width="200">200k +1k fees<\/td>\n<td style="text-align: center;" width="200">503 pm<\/td>\n<td style="text-align: center;" width="200">\u00a313,072<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style="height: 83px;" width="463">\n<tbody>\n<tr>\n<td style="text-align: center;" width="200">Lender B<\/td>\n<td style="text-align: center;" width="200">3.5% rate<\/td>\n<td style="text-align: center;" width="200">Total cost<\/td>\n<\/tr>\n<tr>\n<td style="text-align: center;" width="200">200k + 99 fee<\/td>\n<td style="text-align: center;" width="200">584 pm<\/td>\n<td style="text-align: center;" width="200">\u00a314,115<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nSavings made by taking the lower rate with higher fee\u00a0<strong>= \u00a31,043<\/strong>\n\nAs you can see, finding the best buy to let remortgage broker to take care of your remortgage for is crucial. Otherwise it could end up costing you thousands more than it needs to.\n<h2 id="talk-to-expert-btl">Talk to an expert buy to let remortgage advisor today<\/h2>\nThe advisors we work with are experts in this field and can help you get the best possible deal on a \u2018buy to let\u2019 remortgage.\n\nIf you like anything in this article or you\u2019d like to know more, call Online Mortgage Advisor today on 0808 189 2301 or make an <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-buy-to-let-specialist\/">enquiry here<\/a>.\n\nThen sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.\u00a0\u00a0\u2013 We don\u2019t charge a fee and there\u2019s absolutely no obligation or marks on your credit rating.