Remortgaging a buy-to-let

Posted by Oliver West, August 31, 2021

Remortgaging a buy-to-let

Remortgaging a buy-to-let property is usually done to avoid lapsing onto a lender’s more expensive Standard Variable Rate. But it’s also a great opportunity to see if you can reduce your monthly payments or shorten the remaining term. It can also be done to release equity from the property, freeing up cash to invest in another buy-to-let. With Molo, remortgaging a buy-to-let can be just as straightforward as remortgaging a residential property.

The process of remortgaging a buy-to-let

1. Check that you’re near the end of your initial term

While you can remortgage at any time, your existing lender may charge a hefty fee for doing so within the initial term. So if you’ve got a two-year fixed interest mortgage, you’ll probably find it more cost-effective to wait until you’re nearing the end of that two-year period.

At Molo, remortgaging a buy-to-let can take from a few days to a few weeks, depending on your circumstances. But we suggest starting the process around three months before your current deal ends and definitely no later than two months. 

2. Decide on your goals

There are many reasons you might want to remortgage a buy-to-let property:

  • Reduce your monthly repayments
  • Reduce the remaining mortgage term
  • Switch between capital repayment and interest-only deals
  • Change the fixed interest period (eg. from 2 years to 5 years)
  • Release equity from the property to free up some cash
  • Change from a buy-to-let to a residential mortgage

Once you’re clear on what you’re hoping to achieve, you can start to look around for a suitable mortgage deal.

3. Find a new deal

The simplest way to remortgage is to get a new deal (called a product transfer) from your existing lender. However, you can often find a more competitive deal with a different lender. So it’s always good to have a look around first.

Be sure to specify whether you’re operating as an individual or a limited company, as lenders will offer different deals depending on your circumstances.

At Molo, you can explore our deals on our buy-to-let mortgage finder. And you can see the kind of remortgage deals we offer by scrolling further down this page.

4. Apply for the remortgage

When you apply to remortgage a buy-to-let with a lender, you’ll be asked to provide some information. This may include details about:

  • you (eg. identification)
  • your income (eg. bank statements)
  • your property (eg. rental income)
  • your current mortgage

At Molo, you can upload your info quickly and with ease.

To assess what the property’s worth, the lender will carry out a valuation. This may be done in person or digitally. At Molo, we work with Rightmove to conduct our valuations digitally as this process is much faster than booking someone to inspect your property in person.

The lender may also run a credit check, so you may want to check your credit file in advance to make sure any potential issues have been addressed.

You may also need to pay fees to your new lender, including product fees and valuation fees. And you may need to pay your solicitor if you use one.

What remortgage products do we offer at Molo?

At Molo, we offer a range of buy-to-let residential remortgage products to suit a wide range of needs. And because we’re a fully digital mortgage lender, our products can be applied for easily and approved quickly.

A flexible range of remortgage products for your every need

Depending on your required loan-to-value (LTV), you’ll be able to choose from over 40 remortgage deals.

All of our remortgage deals are interest-only to keep your monthly repayments at a minimum.

At the time of writing, you can choose between:

  • LTVs from 65%, 75% and 85%
  • fixed rate periods from 2, 3 and 5 years
  • terms between 5 and 35 years
  • rates from as low as 2.79%

For full details, view our remortgage deals.

Inclusive eligibility criteria for every landlord

Our eligibility criteria has been designed to offer loans for the majority of borrowers, as well as borrowers that have been traditionally underserved by the mainstream lenders (such as the self-employed or those buying HMO properties).

At the time of writing, our criteria welcomes:

  • first time landlords
  • self-employed workers
  • those buying HMO properties
  • those buying ex-local authority properties
  • applications using a Special Purpose Vehicle (SPV) limited company
  • loan sizes from £25,000 to £2,000,000
  • property values from £75,000

For full details, view our eligibility criteria.

Features that set Molo apart

When you remortgage with Molo, you’ll enjoy a 21st century mortgage experience – one that’s fast, simple and completely online.

Thanks to the speed of our credit decisioning, you’ll receive a mortgage offer from us in as little as a day. And we work with trusted partners, including Experian and Rightmove, to save you valuable time entering information about your finances and your property. So if you’re looking to remortgage as quickly as possible – perhaps to avoid lapsing onto your current lender’s Standard Variable Rate – Molo could be just the lender you need.

And because we’re a digital mortgage lender, the whole remortgage process is incredibly simple. You won’t have to worry about booking in-person appointments or filling out any paperwork. Everything’s managed through the Molo website, where you’ll have full visibility over the status of your application.

Of course, there might be times when you’d prefer to speak to a person. And that’s completely fine! You can talk to our team by phone, email or live chat. So you’ll always have human support when you need it.

To get started, remortgage with Molo.

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