Remortgage loans are becoming more and more popular these days, in fact, in some markets they are more than half of the total amount of mortgages being written out. And new instruments like the self employed remortgage are gaining popularity, too – there are even bad credit remortgages available for people with a troubled credit history. Although they aren’t a big part of the market, buy to let remortgages are still popular and people are wanting to get them. They are extremely popular in the UK, but there were only 4 companies that offer them there, but now there are about 50 companies that will write a buy to let remortgage for the right candidate.
There are some buy to let deals out there, and investors are determining that they should remortgage more and more than they used to before in the past. If you see lower buy to let remortgage rates with a different lender, it isn’t always best to switch right over simply because of that lower rate. There are other things and fees that you need to take into consideration before even considering getting a remortgage for buy to let. The structure of how your interest payments are may be different. There may be exit and entry fees for the different loans. And, there is a varying degree in the flexibility of different remortgages and remortgage rates so be sure to check into all of those parts before jumping at any buy to let remortgage deals that you see.
You probably want to look into a remortgage product that allows you a greater deal of flexibility on overpayments and underpayments, because of the nature of renting your place out to others. Some months you may be able to have extra money to pay onto the loan. But, if a tenant moves out and you can’t find someone to replace them, then you may not be able to pay the full amount. There are remortgages that allow that, but you definitely need to make sure that the one you are switching to have that.
Also, as a last resort before you consider a buy to let remortgage, is to call your current lender and let them know the terms you are getting fromthe other company. You can easily get a remortgage quote at any time, of course whether you have good credit or you are applying for an adverse credit remortgage. Your current lender may be more willing to change to those terms in order to keep your business. That can save both you and the lender a lot of time, especially any fees that may be associated with it.
Good luck with finding and comparing buy to let remortgages!