Buy to Let Remortgage

How long does it take to remortgage a Buy to Let?

On average, it takes four to eight weeks. It can take longer and it can be quicker, depending on the lender’s processing times and how quickly we can get a valuation. Some lenders do a ‘desktop valuation’ where they just view the property online and accept straight away, or they may send a surveyor out, which can take an extra couple of weeks.

Also bear in mind that when you’re changing lenders, you will need a new solicitor. The legal process can potentially take some time as well. It depends on the client, lenders and solicitors, but we advise you to use a broker and be proactive with the solicitor. That can speed up the progress significantly.

What costs are involved with remortgaging a Buy to Let?

Remortgaging isn’t free, but there may be some incentives. Typical costs may include arrangement fees, especially when you are taking a fixed product. These fees can range between £1,000 to 2% to 3% of the loan amount.

There are also valuation fees. Certain lenders offer free valuation, but others may not. It may depend on the product that you choose. Costs range between £200 to £300 up to almost £1500, depending on the value of your property.

You will need a new solicitor and legal fees can range from between £500 to £1,000. Next are broker fees. Some brokers charge for remortgaging, so bear that in mind.

The last thing to factor in is that if you are still in your fixed term but you want to change rate, there are early repayment charges. Look at your product details or speak to your current lender to see if any charges will apply.

Do you have to pay stamp duty when remortgaging a Buy to Let?

Fortunately not. No stamp duty is due if you’re remortgaging your Buy to Let. The only time that will happen is if you are adding someone’s name to the mortgage, or you’re removing someone’s name – that’s known as a transfer of equity. At that point, there may be stamp duty charges.

What are the benefits of remortgaging a Buy to Let property?

The main thing to look for will be lower monthly payments. You’re looking to remortgage for a better rate. You may look to remortgage to unlock some equity, or to avoid being on the SVR, which can be quite a high rate.

You also may look to remortgage for more flexible terms, with lenders that don’t have early repayment changes for fixed periods. Some landlords also look at the tax efficiency of their remortgage. That’s something to bear in mind.

What else do we need to know about a Buy to Let remortgage?

I believe a good broker is invaluable for a Buy to Let remortgage because we can compare a wide range of lenders – not those directly on the high street. There may be specialist Buy to Let options that will suit you.

Perhaps you could release more equity than you thought was available to you. A broker will also understand complex lender criteria around the type of property and lending options. With Buy to Let there are many different forms of lending to take into account.

We can also help if there are low rental yields, or if you’re a first time landlord looking for advice. If you’re switching from a personal name to a limited company, speak to a broker and we can advise you on the implications for that.

A broker also speeds up the process. We speak to the solicitor and the lender for you, and move the process on as quickly as possible.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.