Buy to Let Remortgage:

Buy to let remortgage & releasing equity:

If you’re a Landlord with money tied up in your investment property, you have three choices when it comes to releasing the equity.

The first option is simply to sell the property; this could be the ideal solution if the rental return on the property is poor. You may also consider selling if you are looking to leave the property market or relocate your investment.

Assuming you have an existing mortgage you could speak to your lender to ask whether they will extend your mortgage facility. Lenders will consider a “further advance” on your mortgage provided the rental return in strong and you do not exceed the maximum loan to valuation (usually 85%).

The third option might be to consider a remortgage, this involved moving your mortgage to a different lender, or taking out a new mortgage if you purchased the property as a cash purchase.

By taking remortgage advice from a mortgage advisor you could reduce the interest rate and if required release equity, possibly to fund a deposit on a new investment property.

Example: Let's assume that you purchased a property with a buy to let interest-only mortgage of £85,000 on a property worth £100,000. Assuming that the value of the property has increased and its now worth £150,000 with £85,000 outstanding on the mortgage, you could remortgage for 85% of the new property value.

To speak with a buy to let expert, call us directly on 0800 756 9556.

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