Buy to Let Remortgage

Many landlords choose to regularly review their financial arrangements and release as much equity as possible with a buy to let remortgage for several reasons; firstly as an emergency contingency fund to ride out any changes in the market and secondly to increase their portfolio to take advantage of property deals. By reviewing your portfolio on a regular basis you could also save on mortgage costs.

By taking equity from your existing properties, including your own residential property, you could invest further to build your portfolio, minimise your risks and maximise your returns.

Take advantage of our Property Portfolio Review service

The majority of our mortgage products allow for buy to let re-mortgage and are available to view in our Best Buy to let Rates page. Our recommended suppliers are always available to discuss your personal requirements and talk you through the best available options, contact us today via our on-line form to discuss your personal requirements.

Why it might be better to refinance than to sell

Imagine you had bought your buy to let property for £100,000 and taken a £75,000 buy to let mortgage some time ago.

Now let's assume that, as time has passed by, both the property and the rent have increased by 50%.

So now the property is worth £150,000 and you still owe £75,000 on your interest only mortgage.

You have three options:

• Keep the property and keep banking the handsome profits you are now making on your rent.
• Sell the property. This will give you £75,000 less costs. But what about Capital Gains Tax? Unfortunately, by selling the property you have raised a £50,000 capital gain. The tax on this will be a flat rate of 18% i.e. £13,500 (assuming you're not eligible for any form of relief).
• Remortgage the property. Bearing in mind the property and the rent have risen by 50% why not increase the mortgage by 50%? This would release £37,500 and the rent would continue to pay for it. You haven't realised a capital gain so there is no tax to pay. Better still, you still own the property, so you can sit back for as long as it takes to double in value yet again!

Do you have a buy to let property which increased in value? If so, which option are you going to take?