First lets define a buy to let property.  These are properties that are brought for the sole purpose of having them rented out by a landlord.  In America these are call rental properties.  Buy to let properties are owned by a landlord but they are money generating properties.  It is the hope that the landlord will get money from the renter to cover all of his monthly expenses which can include the mortgage payment, insurance, property taxes and miscellaneous fees like association fees.

What are buy to let remortgages?

Buy to let properties already have loans attached to them.  So, a buy to let remortgage is the process of getting a new mortgage loan at a new bank to pay off the loan from the original bank.  The new bank assumes the new loan and receives the new payments from the property owners.

Why would anyone want to do this?

Mortgage rates are at record lows now and if a property has a high interest rate attached to it this is the perfect time to remortgage a property to take advantage of the rates that the government are releasing at this present time.

Are Buy to Let Remortgages accessible?

Yes, they are.  There are always going to be property owners who want to make money off of renting there properties out to the public.  If this is the case, then there will always be a need for buy to let remortgages as rates fluctuate up and down in the market.

At this present time credit is not flowing the way that most would like it to flow.  Lenders are in fierce competition to get some of the new mortgage business and right now rates are cheap enough that it just make perfect sense to shop for a mortgage that would provide the necessary capitol for a buy to let property.

Buy-to-let loans are often no higher than between 75% and 85% of the value of the property you are buying.  This is known as a loan-to-value ratio. So to have the widest possible choice of mortgage offers, aim to put down a deposit of around 25%.

Interest Rates

Don’t expect to get the best interest rate on a buy to let property.  Lenders are take a lot more risk for these properties so they feel that they are justified to ask for a little more interest in order to finance this type of deal.  So, if the interest rate is 3% and your credit is perfect you may have to pay a point or two more in interest.

Remember, these properties are not lived in by the owners and the Bank assumes that if the owner is unable to pay the loan they would just walk away from the property and allow it to foreclose.  To elevate some of that pain by the lender they will want more money up front so that they would not loss as much money in the long run.