A Buy‑to‑Let Remortgage allows landlords to move an existing rental property mortgage to a new deal. This may help reduce interest costs, release equity, or provide more suitable lending terms. Many landlords choose to remortgage when a fixed rate ends, when expanding a portfolio, or when their financial position has changed.
At Connect Mortgages, we help landlords compare buy-to-let remortgage options across the market. Our advice is tailored, regulated, and focused on long-term affordability.
What Is a Buy-to-Let Remortgage
A buy-to-let remortgage involves replacing your current mortgage with a new one, either with the same lender or a different one. The property remains let to tenants, and the mortgage is assessed primarily on rental income rather than personal salary.
Landlords often remortgage to secure a lower interest rate, switch from a variable rate, or raise capital from an existing property. In some cases, a remortgage may also be used to move borrowing into a limited company structure.
Why Landlords Choose to Remortgage
There are several reasons landlords consider a buy-to-let remortgage.
Common motivations include:
- Reducing monthly mortgage costs
- Avoiding higher rates after a fixed deal ends
- Releasing equity for another property purchase
- Funding property improvements
- Consolidating borrowing across a portfolio
Some landlords also use a remortgage to move away from restrictive lender criteria. If your situation is complex, a Specialist Mortgage may offer greater flexibility.
360 Portfolio Review for Landlords
Landlords with multiple properties may benefit from a structured review of their borrowing. A buy-to-let remortgage can be more effective when considered alongside the wider portfolio, rather than in isolation.
The 360 Portfolio Review provides a holistic assessment of a landlord’s existing properties, mortgages, and lending structure. It helps identify opportunities to improve cash flow, reduce exposure to rate changes, and align borrowing with long-term investment goals.
This review considers factors such as loan-to-value across the portfolio, rental yield performance, lender concentration, and future refinancing risks. It is beneficial for portfolio landlords who may be affected by changes to stress-testing rules or tax considerations.
By combining a buy-to-let remortgage with a 360 Portfolio Review, landlords can make informed decisions about whether to refinance, restructure borrowing, or release equity in a controlled and compliant way.
Buy to Let Remortgage Criteria |
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|---|---|
| Buy-to-let lenders use remortgage criteria to assess both the borrower and the rental property. These checks help determine affordability, risk, and eligibility. Buy-to-let lending is generally viewed as higher risk than residential mortgages, which is why the criteria are often more detailed. Lenders review personal circumstances, rental income, credit history, and property details before making a decision. | |
| Borrower Criteria | |
| Homeownership | Many lenders require landlords to own a residential property already. This may be owned outright or with a residential mortgage. |
| Income Requirements | While rental income is the main focus, most lenders also require a minimum personal income. This is often around £25,000 per year and may come from employment, self-employment, or pension income. |
| Age Limits | Applicants are usually required to be at least 18 or 21 years old. The mortgage term typically ends before the borrower reaches age 75-85, depending on the lender. |
| Credit History | A strong credit profile improves access to competitive rates. Lenders carry out credit checks and may decline applications where there are recent County Court Judgements, defaults, Individual Voluntary Arrangements, or bankruptcy. Issues within the last three to six years are more likely to affect eligibility. |
| Landlord Experience and Portfolio Size | Some lenders limit the number of buy-to-let properties a borrower can hold. Landlords with four or more mortgaged properties are classed as portfolio landlords and usually require a full portfolio assessment covering all properties and mortgages. |
| Property and Financial Criteria | |
| Loan-to-Value | Most lenders require at least 25 per cent equity in the property. This means a maximum loan-to-value of 75%. Higher loan-to-value options may be available in some cases, particularly when the property has a higher Energy Performance Certificate rating. |
| Rental Income and Interest Cover Ratio | Rental income is the primary factor used to assess borrowing levels. Lenders apply an interest cover ratio to ensure rent covers mortgage payments at a stressed rate. Basic-rate taxpayers often require 125 per cent coverage, while higher-rate taxpayers typically require around 145 per cent. |
| Property Type and Condition | The property must be suitable for letting and in good condition, with a working kitchen and bathroom. Some lenders restrict non-standard construction, such as local authority flats with external access or properties with short lease terms. An Energy Performance Certificate rating of E or above is usually required. |
| Minimum Ownership Period | Most lenders require the property to have been owned for at least six months before a remortgage is considered. This may not apply when remortgaging with the current lender. |
| Purpose of Capital Raising | When releasing funds, lenders assess how the money will be used. Property improvements and further investment are commonly accepted purposes. Debt consolidation may be assessed more carefully and may not be accepted by all lenders. |
Remortgaging to Raise Capital for Another Buy-to-Let
Many landlords use a buy-to-let remortgage to raise capital for another property purchase. This approach allows equity built up in an existing rental property to be released and used as a deposit for a further buy-to-let investment.
A remortgage to raise capital can support portfolio growth without selling existing assets. The amount that can be released depends on rental income, property value, and lender loan-to-value limits. Lenders will also assess whether the existing property remains affordable once the new mortgage is in place.
When building a portfolio, it is important to consider the impact of additional borrowing across all properties. A structured review, such as a 360 Portfolio Review, can help landlords understand how releasing equity may affect future lending options, cash flow, and refinancing risk.
In some cases, landlords may consider a Buy-to-Let Mortgage for the new purchase, or a Limited Company Mortgage if the property is acquired through a company structure. For time-sensitive purchases, a Bridging Loan can serve as a short-term solution before moving on to a long-term buy-to-let mortgage.
Using a buy-to-let remortgage to fund further investment should be assessed carefully. Professional advice helps ensure the strategy remains affordable, compliant, and aligned with long-term portfolio objectives.
Next Steps
If you are considering a buy-to-let remortgage, speaking to an adviser can help you understand your options clearly. Connect Mortgages can review your current deal, assess lender criteria, and recommend a solution that fits your goals.
→ Find Mortgage Advisers to get personalised advice today.
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