How Tenant Types Can Impact Your Best Buy to Let Remortgage Options
Some lenders will only approve buy to let remortgages for properties with a specific type of tenant.
Examples of potential tenant types that may need specialist advice include:
- Student tenancies - student rentals often cost more to maintain, so some lenders won't lend against this type of rental property.
- Benefits tenants - again, some lenders consider tenants on benefits a risk, although most will waive that restriction if your tenant receives disability benefits.
- HMOs - houses of multiple occupation are often also more exposed, but lenders will consider the remortgage more favourable if the tenants are professionals.
- Sitting tenants - this can make a buy to let remortgage much more complex since a lender will recognise the potential for the tenant to call on their right to remain in the property for life and pass the tenancy onto a beneficiary.
Please get in touch if you need a buy to let mortgage for a property with sitting tenants. The scenario is more challenging because the 'fair rent' rules may mean a mainstream lender won't consider the application.
However, specialist mortgage providers may be happy to help with support and negotiation from the Revolution Brokers team.
Applying for a Buy to Let Remortgage on Different Property Types
The next factor is the nature of the buy to let property you wish to remortgage. You'll likely not encounter any problems if it's a standard brick building with a slate roof.
However, anything considered non-standard can be more difficult, including:
- Flats and high rise buildings.
- Home with a thatched roof.
- Properties built from stone, wood frames or metal frames.
- Accommodation with solar panels.
- Roofs constructed from tin or felt.
That doesn't mean you can't remortgage this type of rental property, but you usually need to approach a niche lender with less rigid property eligibility requirements.
Mainstream lenders tend to restrict lending only to those lowest-risk properties since anything less conventional has a higher chance of incurring extensive maintenance costs and potentially impacting the borrower's ability to keep up with the interest payments.
Using a Buy to Let Remortgage Comparison to Find the Best Rates
There are thousands of potential remortgage products to choose from, and a lot depends on your income, credit history, deposit value, and equity ownership.
The best way to find a competitive buy to let remortgage deal is to work with a broker with an in-depth knowledge of the market.
Our team assesses your circumstances and the remortgage scenario in detail before making any recommendations, which is key to avoiding rejected applications or using a lender whose eligibility criteria you can't meet.
We wouldn't advise relying on any rates tables or online calculators for anything other than a rough indication of how much you might be able to borrow.
That's because calculators only display results from lenders paying to advertise their buy to let deals.
Likewise, published rates are only ever estimated, and the actual rates quoted will vary considerably depending on all of the criteria we've discussed here.
Expert Remortgaging to Buy to Let Advice
As we've seen, there are all sorts of reasons you might want to remortgage a buy to let property, and several criteria a lender will assess before they decide whether to make an offer and, if so, at what interest rates.
The right buy to let remortgage deals will often vary between landlords.
For example, if you have a bad credit history, a specialist lender in this field may be the fastest way to secure the lending you need to release equity for debt consolidation.
Alternatively, suppose you want to remortgage to reduce your interest costs and own a significant number of portfolio rental properties.
In that case, another lender might be far better placed to accept your application.
Please contact Revolution Brokers at firstname.lastname@example.org to arrange a good time to discuss your rental property remortgage, and receive independent advice from the sector experts.