Buy to Let: Can You Remortgage?

Wondering whether a buy to let remortgage is an option for you? Well, the answer is yes. Please note, though, that this is the term used in the United Kingdom. In the United States, such a remortgage is not referred to as a "buy to let remortgage"; you are simply requesting to remortgage an investment property, but the following information is still applicable. There are several companies out there that are willing to do a buy to let remortgage in order for you to save some money moving forward. A buy to let remortgage can be helpful to you because it allows you to follow a similar process as you did getting a mortgage, find a better interest rate and free up some money on your property to invest.

Similar Process

A buy to let remortgage process is very similar to a standard residential remortgage. The lender will most likely require that you provide paperwork outlining your rental income and your personal income. You also have the option to certify that your rental income is enough to be your main source of income. The buy to let remortgage process is intended to make sure that you are making enough money on your property to be able to maintain its upkeep and that you are able to make the interest payments.

Better Interest Rates

Due to the economy and the housing industry, the interest rates on buy to let mortgages and remortgages are very competitive. You are able to pick from a standard variable rate, tracker rates or fixed rates. This will allow you to shop around through different financial institutions in order to find the lowest rate possible. In doing this, you will help to save yourself money moving forward on your monthly payments. Since there are so many options for decreasing your interest rate, it would be silly not to research how you can lower your monthly payments.

Free Up Some Money

If you have had your buy to let property for a long time, over 10 years, you are in the perfect position to research a buy to let remortgage. Since you have had your house for several years, you have more equity, which allows you to remortgage for less and profit more. By remortgaging, you would be able to shorten the mortgage period left, lower your mortgage in order to double up on future payments or use the money saved to reinvest on future properties. Since buy to let options are more appealing in this market as a result of its becoming more difficult for younger generations to purchase a house without having a substantial down payment, you are in the ideal position to profit.

It is always important to do the proper research before remortgaging your property because you may be held responsible for early repayment fees or other consequences. Be sure to look through your original mortgage agreements and speak with the lender whom your mortgage is through to verify your eligibility. By conducting your research, you will be able to decide if you can take this opportunity to decrease your monthly mortgage payment, lower your interest rate, and possibly invest in another property.

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