The Client
The clients had previously switched their former residential property onto a let to buy mortgage, allowing them to raise the deposit for a new home. Their fixed rate on that property was due for renewal, so they needed to secure a new mortgage before it expired. Both applicants were in full-time employment with a clean credit history.
The Scenario
With lenders taking longer to process applications and mortgage rates rising, the clients wanted to lock in a rate several months in advance to secure the best deal available. They were not looking to raise any additional capital, which meant both a product transfer with their existing lender and a full remortgage to a new lender were genuinely on the table. Given the wider economic uncertainty, they told us a five-year fixed rate on an interest-only basis would be their preference.
The Solution
We reviewed the product transfer options available through the clients’ current lender, then assessed the whole of the buy-to-let market to see whether switching lenders could do better. A new lender offering a free valuation and free legal service came out ahead – saving the clients more than £1,500 over the five-year term compared with staying on a product transfer with their existing lender.
The Outcome
The application was submitted and the mortgage offer issued within 14 working days, giving the clients a competitive five-year fixed rate locked in well ahead of their existing deal expiring, along with the savings from moving lender rather than defaulting to a product transfer.
Frequently Asked Questions
Is it better to do a product transfer or a full remortgage on a buy-to-let?
It depends on the numbers, and it is always worth checking both before deciding.
A product transfer with your existing lender is often the path of least resistance, but a full remortgage across the whole market can produce a meaningfully better rate, especially where incentives like a free valuation or free legal work are on offer.
Can I lock in a new buy-to-let mortgage rate before my current deal ends?
Yes, most lenders will allow you to secure a new rate several months ahead of your existing deal expiring.
This is particularly useful when rates are rising or lender processing times are slow, since it protects you from further increases while your application is assessed.
What costs are involved in a buy-to-let remortgage?
Costs vary by lender, but many offer incentives such as a free valuation or free legal service to attract remortgage business.
Weighing these incentives against the headline rate is important, since a slightly higher rate with genuinely free legal and valuation costs can still work out cheaper overall.
Why might interest-only suit a buy-to-let remortgage?
Interest-only keeps monthly payments lower, which many landlords prefer for cash flow reasons.
It suits buy-to-let more naturally than residential lending, since the expectation is usually that the property itself, or the sale of it, will repay the capital at the end of the term.
If you have any questions relating to a buy-to-let remortgage, contact us today to speak directly with one of our Mortgage Advisors.
UK Mortgage Broker is a whole-of-market broker directly authorised and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on a loan secured against it.
Call: +44 1628 969 500
Email: info@uk-mortgagebroker.co.uk
Related Pages
- Buy-to-Let Mortgages – whole-of-market advice for landlords across the UK
- Remortgage UK – when remortgaging makes sense and how the process works
- How Lenders Actually Check Your Income – what counts and what does not when a lender assesses affordability
- UK Mortgage Rates – current rates available across the whole market