What Is Tricky About Buy to Let Remortgages?
The realities of a buy to let property involve a fair amount of upkeep, but remortgaging may not be for you.
14:16 20 March 2013
Caring for a buy to let property can have a lot of pitfalls. If anything happens to the property or there are improvements which need to be made, sometimes in a timely manner, you may not have the cash lying around waiting to be spent.
It is easy to consider a buy to let remortgage, but before you begin the process here are a few things that you may want to know beforehand:
- You may have to be an existing bank client for some buy to let remortgages. Check with your own financial institution but also shop around in case you find a better rate with another company who will be willing to handle the remortgage.
- Most of the buy to let remortgages are two year plans. You will usually be able to choose between a fixed type of remortgage or a tracker.
- Consider an early repayment charge and what effect that may have on your finances.
- There also may be certain fees with buy to let remortgages. The fees could be a percentage of the loan amount or a fixed amount.
- Loans offered by financial institutions will have a maximum loan to value amount, but this can differ between institutions. Check around to make sure you find one that can get you the amount you need.
- Buy to let remortgages essentially borrow against the equity in your property, so they will reduce the amount of equity if you take out one of these loans.
The key to getting a good deal from the many buy to let remortgages that are available is to do some research. Take into account the fees, interest rates, repayment plans, and the term.