Barclays Bank recently released its Q1 figures, and according to the bank, Brexit is doing a number on the mortgage figures. Buy to let remortgages have seen a marked drop in numbers with a 4.2% fall from last year, amounting to 15,800 remortgages only. While the drop was a year-on-year drop, the figures for January in this particular sector were decent. Buy to let remortgages are an important component for investors, as these funds are often used to increase the value of their investments. Financiers are encouraged to promote these products in order to stimulate the buy to let market and improve options available, as rental properties in the UK market are in short supply.
How Does Buy To Let Mortgage Work?
One of the first things to decide before opting for an investment property is whether to finance the whole or part of it. When the property purchased with the intention to rent it to a tenant, the property is known as a buy to let. A buy to let mortgage, therefore, is the finance to secure an investment property with the intention to rent it out. Investors often have the opportunity to benefit from financial products specifically designed for them. These often include a number of options tailored to this particular market such as fixed rate periods, unique lending terms, and more.
Buy To Let Remortgages Explained
Landlords who rely on a buy to let mortgage to finance the purchase of their investment property may find that they have equity in their property a few years later. To access this equity, a remortgage is required. Another reason an investor may want to consider a remortgage of their property is when the mortgage reaches the end of a two-year fixed interest period. While a remortgage might typically put them right back in a favourable rate, there is the odd chance that they’ll get lumped with a far higher rate if market conditions have changed drastically within that two-year period.
Buy To let Repayment Mortgage
Buy to let landlords have a number of things in their favour, and one of them is the buy to let repayment mortgage. While some institutions offer an interest-only mortgage option too, this places an investor in the tough position of trying to come up with additional cash to fund the capital amount at the end of the period. A repayment mortgage, on the other hand, allows the investor to pay back interest and a bit of the outstanding capital to reduce the overall amount owed to the financial institution. This means that, at the end of the term, there is no lump sum payable. While this means that the initial installments are higher, it does reduce the pressure on the investor at the end of the term.
Buy To Let Remortgage Calculator
At Pro Buy To Let, we have a team of dedicated professionals who can guide investors to the best avenue for their particular buy to let needs. One of the ways we do this, is by helping landlords with the buy to let remortgage calculator. This will give investors an indication whether it’s in their best interest to remortgage or not. Some landlords are happy to keep their finances as is until their finances are in a better position. One of the benefits of waiting things out a little is that this could have a positive effect on the credit score and a better score might result in better interest rates and even borrowing limits.
Remortgaging Buy To Let Property
As buy to let properties are becoming increasingly popular with investors, financiers are stepping up to the plate to offer investors a smorgasbord of options. One of the biggest players in the mortgage arena, The Mortgage Lender, has decided to offer landlords a carefully cultivated buy to let remortgage product. For investors, the unique tailoring ensures that they get the product that is best-suited to them. Not only do they have attractive rates and fixed-rate options, but they also offer up to 80% loans for qualifying candidates. For investors, the timing couldn’t be better as uncertainty in the property market prevails.
Buy To Let Remortgage No Fees
Part of the decision making process when opting for a remortgage, is the cost of doing so. For those who wish to get the most out of their buy to let remortgage, a bit of research will go a long way. By simply comparing offers from the various financiers, landlords may even end up in a better position than they were before.
As one of our services at Pro Buy To Let, we offer our clients a fair overview of what buy to let remortgages are available to them. Sign up today to find out more!