Remortgage a buy to let property
How to remortgage a buy to let
Remortgaging a buy to let property
To remortgage a buy to let property, a lender will generally carry out a valuation on your property to determine how much it is worth. They will also look at the rental income you receive to make sure there is enough to cover your mortgage repayments. This amount should be between 125% and 145% of your monthly mortgage payments, and they will also take any taxation liability you have into account.
Some buy to let mortgage lenders may want you to have a minimum personal income. However, if you do not meet their threshold or have difficulty proving your earnings, then there’s no need to panic! Lenders accept all different amounts, and some will just use your rental income for their affordability assessments.
Remortgaging a buy to let to release equity
You can remortgage a buy to let property to release equity for many purposes. The most popular is to make improvements to the property. However, the capital can also be used to buy more rental properties and carry out improvements on your main residential, amongst other things. The only instances you generally won’t be able to remortgage are due to gambling or investing in a business.
Best buy to let remortgage
To get the best buy to let remortgage deal for your investment, it is advisable to speak to a mortgage broker like Fosters Financial. As buy to let mortgage specialists, they know each lender’s criteria and will help ensure that you have the right product for your individual needs.
The Financial Conduct Authority does not regulate most buy to let mortgages.