Like any mortgage, a buy-to-let deal eventually ends, and remortgaging lets you secure a new one rather than slipping onto an expensive default rate. This guide explains remortgaging a buy-to-let property: why landlords do it, how it is assessed, releasing equity to expand, and the costs and timing to consider.
The same principles apply
Remortgaging a buy-to-let works much like remortgaging your own home: when your deal ends, you switch to a new one, either with your current lender or a new one, to avoid the standard variable rate and secure a better deal, as our guide to remortgaging explained covers. The main differences are that the assessment focuses on rental income, and the tax and cost considerations of buy-to-let apply.
Why landlords remortgage
Landlords remortgage for several reasons: to avoid the lender's standard variable rate when a deal ends, to secure a better rate and protect rental profit, to release equity to fund another purchase, or to change the terms of their borrowing. Keeping a buy-to-let on a competitive rate is important, since the mortgage is a major cost that directly affects the profitability of the rental.
Rental cover is reassessed
When you remortgage a buy-to-let, the lender reassesses it against the rental cover test, checking the current rent covers the new mortgage interest by the required margin at a stressed rate, as our guide to buy-to-let rental cover explains. If rents have risen, this may be easier; if rates have risen, harder. So the rental cover position can affect your remortgage options and how much you can borrow.
Releasing equity to expand
Many landlords remortgage a buy-to-let to release equity, borrowing more against a property that has risen in value to fund the deposit on another, a common way to grow a portfolio, as our guide to releasing equity explains. This recycles equity into new investments, but it increases borrowing and risk, so it should be done with a clear plan and an eye on affordability across your properties.
Watch for early repayment charges
As with any mortgage, leaving a buy-to-let deal before it ends can trigger an early repayment charge, often 1% to 5% of the balance, as our guide to early repayment charges explains. So timing your remortgage for when your deal ends usually avoids the charge. If you are releasing equity mid-deal to expand, weigh the charge against the benefit of the new investment.
Interest-only and remortgaging
Many buy-to-lets are interest-only, so remortgaging is also how landlords roll their borrowing forward at the end of a deal without repaying the capital, as our guide to interest-only buy-to-let explains. Since the capital is typically repaid only on sale, remortgaging onto a new interest-only deal is the normal way to continue. This makes regular remortgaging a routine part of running an interest-only buy-to-let.
Timing and portfolio considerations
Start your buy-to-let remortgage in good time, several months before your deal ends, to avoid the standard variable rate, and consider how it fits with your wider portfolio if you have several properties, as our guide to portfolio landlord mortgages explains. Coordinating remortgages across a portfolio, and keeping each property on a competitive rate, helps protect your overall rental profit and keeps your finances manageable.
Product transfer for a buy-to-let
As with residential mortgages, you can often stay with your current buy-to-let lender through a product transfer, switching to a new deal with lighter checks and less paperwork than a full remortgage, as our guide to product transfers explains. This can be quick and convenient, though your lender's offer may not be the most competitive, so comparing it against the wider market is still worthwhile.
If rents have changed
Changes in rent affect a buy-to-let remortgage. If your rent has risen since you first borrowed, the rental cover may now support more borrowing or an easier remortgage. If rents have fallen, or rates have risen, the rental cover test may be tighter, limiting your options. Knowing the current achievable rent, and how it compares with your mortgage interest at today's stressed rates, helps you anticipate your remortgage position.
If the property has risen in value
If your buy-to-let has risen in value, your loan-to-value has fallen, which can unlock better rates or allow you to release equity, as our guide to how a higher value lowers your LTV explains. Remortgaging captures this improved position. Many landlords use a rise in value to remortgage onto a better rate, release equity for another purchase, or both, making the most of their growing equity.
Remortgaging with credit issues
If your credit has worsened, remortgaging a buy-to-let can be harder, though specialist lenders consider adverse credit, and a product transfer with your current lender may be easier, as our guide to remortgaging with bad credit explains. As with residential remortgages, strong rental cover and equity help. A broker who knows the buy-to-let market can match you to lenders likely to accept your circumstances.
Using a broker
Because buy-to-let lenders' criteria, rental cover rules and rates vary so much, a broker can be especially helpful when remortgaging a rental, comparing the market and finding the best deal for your property and circumstances. They can also coordinate remortgages across a portfolio. Given that the mortgage is a major cost affecting your rental profit, getting the right new deal, with a broker's help, is well worth the effort.
Coordinating across your properties
If you own several buy-to-lets, it helps to keep a calendar of when each deal ends, so you can remortgage each in good time and avoid any slipping onto the standard variable rate, as our guide to portfolio landlord mortgages explains. Coordinating remortgages across your properties, rather than dealing with each as a last-minute surprise, keeps your whole portfolio on competitive rates and protects your overall rental profit.
The cost-benefit of switching
As with any remortgage, weigh the savings from a better rate against the costs of switching, including any early repayment charge and fees, as our guide to the cost of remortgaging explains. On a buy-to-let, where the mortgage directly affects your profit, even a modest rate improvement can be worthwhile over time. Doing this calculation for each property ensures every remortgage genuinely improves your position.
Treated as a regular review rather than a last-minute scramble, remortgaging keeps each of your buy-to-lets on a competitive rate and your rental profits protected, which over the years can make a substantial difference to the overall returns from your property investments.
Starting each buy-to-let remortgage several months before the deal ends gives you time to compare the whole market, line up the rental figures, and switch smoothly, so your property never spends a costly month on the lender's standard variable rate.
In short
Remortgaging a buy-to-let follows the same principles as a residential remortgage: switch when your deal ends to avoid the standard variable rate and secure a better deal. The lender reassesses the rental cover, so rent and rate changes matter. Landlords often remortgage to release equity and expand. Watch for early repayment charges, remember interest-only borrowing rolls forward this way, and start early, especially across a portfolio.
Where to get help and next steps
Read our guides to how remortgaging works, interest-only buy-to-let, and rental cover and the stress test. This is general information, not mortgage, tax or financial advice.