All you need to know about BUY TO LET REMORTGAGE
A buy to let remortgage is simply the refinancing of the current loan that you have on the property you are renting out. This is done when the current mortgage deal runs out, or when you need to borrow more against your buy to let house. Remortgaging a buy to let is a common procedure which can have a number of benefits. Apart from it allowing you to borrow more, you can also take advantage of a cheaper deal, it can also allow you to consolidate all your debts into one monthly payment.
PROBLEMS WITH A BUY TO LET REMORTGAGE
If you’re remortgaging to access equity in the house, you need to balance this extra borrowing with the rental yield you’re receiving from your tenants. So this cannot be a steep increase, nor can it quickly follow a recent increase. It also needs to be in keeping with the area, and the property your letting.
You may also be subject to fees from the lender. Depending on the circumstances of your remortgaging, these can vary from introduction fees, scheme fees, early repayment charges, exit fees and booking fees.
Issues faced by new landlords
New landlord rulings are now in place that could cause problems on remortgaging plans, particularly those where you’re hoping to borrow more. These rulings mean that your lender will look at your entire property portfolio to come to a decision. This means if you have any other buy to let properties, and one of them isn’t performing up to scratch, it could mean your request to borrow more is turned down.
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