You may be looking to remortgage your buy to let property for a number of different purposes.
- - Find a lower rate
- - Release capital for yourself
- - Expand your property portfolio
- - Raise money for property repair`s or improvements.
Find a lower rate
By comparing buy to let remortgages you may be able to reduce your monthly payments by finding a remortgage that offers you a lower rate, thus increasing your profit margin on your rental properties.
Release Capital For Yourself
If you have equity in your property you may wish to release some of it to take a vacation, buy a newer car or make some home improvements on your residential property
Expand your property portfolio
You could release money from your current rental portfolio to make up a deposit on another property. It is important to make sure you can keep up repayments on all your properties mortgages even if you have difficulty letting it out.
Raise money for property repair`s or improvements.
Every property requires regular maintenance and repair or alternatively making improvement may increase the value of the property or the rental income you are able to charge. You could use the equity that you have in your property to pay for any home improvements or maintained you need to carry out.
Buy to let remortgages
Video transcriptIt`s been a boom time for rented accommodation and landlords looking to expand their portfolios may want to look into buy to let remortgages so that they have the finances to do so. However many new landlords are entering into this market by remortgaging their own home and using the money as a deposit on a buy to let.
Figures from the Council of Mortgage Lenders (CML) show that in the first quarter of 2013, landlord home loans totalled £4.2 billion across 33,500 loans, which represents some 13.4 per cent of total mortgage lending in the country.
With first-time buyers still struggling to get a foot on the property ladder, demand may continue to go in one direction and remortgaging an existing buy to let property could release the funds needed by a landlord to put a deposit down on new houses.
Releasing equity from your property doesn`t have to be spent on purchasing others – instead, you may decide to sink the money back into your existing portfolio in order to add extra rooms or provide additional features which could give your tenants a better quality of living, justifying a higher rent for the property in the future, some landlords even decide to do this via a second mortgage or secured loan.
Alternatively, buy-to-let remortgaging is necessary anyway when you come to the end of your existing mortgage deal and need to find an alternative deal so that you don`t end up on your current lender`s standard variable rate, which could see you paying back more each month. If you want to try out some numbers and rates to see how mortgage payments are affected then feel free to have a dabble with our remortgage calculator on our website.
Whatever your reasons for looking into buy-to-let remortgages, First Choice Finance could help you identify the most suitable product for you.
Discover more at firstchoicefinance.co.uk or call from a landline on 0800 298 3000 or 0333 003 1505 from a mobile.
Mortgages & Remortgages
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