Buy to let remortgage
Remortgaging should be considered
periodically as part of a regular review of your buy to
let mortgages.
A buy to let remortgage might be appropriate in the
following circumstances:
- To raise capital from a mortgaged property
- To raise capital from a mortgage free property
- To get a lower mortgage interest rate
Buy to let mortgage deals may have redemption
penalties for the first few years. At the end of a fixed
or discount period the penalties will probably end. This
is a good time to review your mortgage.
Check out these
buy
to let remortgages here.
Comparing buy to let remortgage deals
When comparing buy to let remortgage offers think
about your future objectives.
- How would you want the remortgage loan structured,
interest only or repayment?
An Interest only loan will minimize your mortgage
payments but will not pay off your mortgage. This type
of loan might be suitable if you intend to sell the
property after a period to realize a gain.
Alternatively you may have other investments running
alongside which will ultimately clear the loan.
A capital and interest loan will clear your mortgage
over the mortgage term. This type of mortgage might be
suitable if you are buying property as a form of
retirement income.
- Will you want to sell or remortgage in the short
term
A remortgage scheme with short or no
redemption penalties may be the answer. If your plan is to build a
portfolio of buy to let properties, then you will want
to be able to release equity to fund future purchases.
- Will you want to release equity in the future
How soon in the future. Does the new lender permit
further advances.
- Do you want the security of a fixed rate over the
next 2, 3 or 5 years, or are you happy for the
interest rates (and mortgage rates) to fluctuate.
You may prefer the security of a fixed rate, but you
are likely to pay more for that protection. Fixed
interest rates are generally higher than discounted
rates. Fixed interest rates mortgages will also have
redemption penalties during the fixed period.
- Do you want the facility to make overpayments
Several mortgage schemes now offer the facility to
make overpayments. What type of overpayments are these
likely to be; lump sum or monthly overpayment.
- How much money do you want to raise
You may be able to remortgage for up to 90% of value.
This figure may be limited by the rental income. Lenders
use different calculations to assess the maximum loan.
Please phone to discuss with an advisor. The capital
raised could be used to fund another property purchase.
Lenders use different criteria for assessing
applicants. Some base their lending decision on earned
income, others purely on rental income.
Some lenders are currently offering fee assisted
remortgages. Please contact us for an up to date
assessment of the mortgage market.
As independent mortgage brokers we are in a good
position to assist in the choice of scheme.
next...remortgage
offers
|
