Buy to Let Property Remortgage advice UK
Can I remortgage a buy to let property?

The simple answer is yes, and there are plenty of reasons why it might be financially prudent to do so. It's estimated that eighty percent of people who have a mortgage are paying too much for it. If you consider that your mortgage is probably your single biggest expense then it makes sense to shop around.

By re-mortgaging a buy to let property you are likely to get a much better deal, especially if you took out your mortgage before 1996. Prior to this date buy to let mortgages didn't exist and borrowers had to rely on comparatively expensive commercial mortgages. Remortgaging also allows you to free up capital that could be used to put down as a deposit on another property.

Landlords are often put off remortgaging a property because they think that the ‘hassle' involved outweighs the benefits. In reality this misguided notion couldn't be any further from the truth; the financial benefits are very real and you'll find that lenders go out of their way to make the process as painless as possible.

However, before you consider remortgaging your property you should be aware that there is a downside. Firstly you'll have to check your original mortgage terms as many have ‘lock in' clauses that tie you to the mortgage for a period of time (you can still switch providers, but you'll have to pay a hefty financial penalty).

You'll also have to fork out for another round of solicitor's fees and administration charges. However, as remortgaging is relatively straightforward your total legal fees shouldn't exceed three figures. It's important to do your homework and balance out this cost against any savings that you might make with a slower interest rate. A number of lenders offer to cover the legal fees in exchange for a slightly less favourable interest rate. Take your time to see what the current marketplace has to offer and don't be afraid to see if you can negotiate a better deal with your existing

 

 

 

© AskFinancially.com 2008

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