At The Mortgage Hut we are often asked if you can remortgage your buy-to-let property and we’re here to tell you yes, you can, and we can help! One of the most common reasons for a buy-to-let (BtL) remortgage is to purchase an additional property and to use the equity from the first as the deposit on the second.
Can I change my residential mortgage to a buy-to-let?
If your lender doesn’t grant consent to let, or it’s not suitable for your situation, you can switch the mortgage on your home to a buy-to-let mortgage. To change your residential mortgage to a buy-to-let one you would remortgage onto a completely new product, potentially with a new lender.
How soon can you remortgage a buy-to-let?
Typically you can remortgage to a new deal six months after taking out your current mortgage. This means you will not be able to release equity for at least six months. If you wait for longer than six months you will have a better choice of remortgage with variable or fixed rate deals and equity options.
What do you call a buy to let remortgage?
A buy to let remortgage is a mortgage deal to let out your property that you can switch to when your existing mortgage deal ends. Whenever you switch to a new mortgage, it’s called ‘remortgaging’. You might hear a buy to let remortgage being called a ‘BTL remortgage’.
What happens when you switch from buy to let?
It is a buy to let mortgage deal that you can switch to when you existing deal ends. Switching to a new mortgage deal is known as remortgaging. You may want to remortgage if you can switch into a lower interest rate, making your buy to let mortgage payments less each month until that deal ends.
Can a buy to let mortgage be used to buy another property?
To find out more about choosing the right buy-to-let mortgage for you, see our article ‘Should landlords choose a repayment or interest only buy-to-let mortgage?’ Using home equity to buy another house can be an effective way to use money that would otherwise sit tied up in your property.
How does remortgaging help you buy a second home?
Remortgaging is a common path many people take in order to buy a second property, but first, it’s good to understand how this works. With every monthly repayment you make on your current mortgage, you are gradually shaving off more and more of your mortgage, and in the process, you’re building up the equity in your home.
