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Yes, you can remortgage a buy-to-let to release equity and put it towards another property purchase. It’s a common route for landlords looking to grow their portfolios without selling off existing assets.
This involves switching your current mortgage to a new deal with a higher loan amount, giving you access to some of the value built up in the property.
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How Does Remortgaging a Buy-to-Let Work?
When you remortgage, your existing loan is replaced with a new one. If the property has gone up in value or you’ve paid off a fair amount already, you may be able to borrow more and release some equity.
Lenders will assess the property’s current value, the rent it brings in and how much you owe. If it all stacks up, they may offer you a higher loan, with the extra cash available for your next purchase.
This approach lets you keep earning from the current rental property while using it to help fund the next one.
When’s the Best Time to Remortgage a Buy-to-Let?
The best time to remortgage is usually just before your current fixed-rate deal ends. Acting early helps avoid moving onto a standard variable rate, which often comes with higher monthly costs.
If you’re still locked into a deal, there might be early repayment charges to consider.
These can sometimes be balanced out by lower rates or the chance to borrow more, but it’s worth checking the numbers first.
Market trends matter too. Interest rates move often, and locking in at the right time can mean better savings over the long run.
What Do Lenders Look for With a Buy-to-Let Remortgage?
Lenders focus on the property’s rental income. They need to see that it covers the mortgage repayments with a good margin.
They’ll also check your credit history, any other properties you own and sometimes your personal income too. For landlords with more than one property, lenders may want to look at your full portfolio.
If your situation is more complex, it helps to work with mortgage advisors who know which lenders are likely to be more flexible.
Can I Live in a Buy-to-Let Property After Remortgaging?
In most cases, no. Buy-to-let mortgages are for rental purposes only, and lenders don’t allow you or close family members to live there.
If you’re planning something different, you’ll need the right type of product that supports that arrangement.
If you’re switching from a residential mortgage to buy-to-let, or changing lenders, make sure you follow the correct steps and have any required permissions in place.
Why Do Landlords Use This Strategy?
Remortgaging a buy-to-let is a popular way to expand a portfolio. It allows landlords to access funds for another property without needing to sell or find a fresh deposit from scratch.
It also means you can keep hold of well-performing properties that are already bringing in rental income. This helps balance your portfolio while keeping your investments working for you.
How Can UK Moneyman Help?
Our mortgage advisors are here to support landlords at every stage, whether you’re remortgaging for the first time or expanding a growing portfolio.
We’ll talk through what you’re looking to do, check how much equity might be available and help match you with lenders offering the right kind of deals.
We offer flexible appointments, including evenings and weekends, so you can get advice at a time that works around you.
If you’re planning to remortgage your buy-to-let to fund another property, we can help you take the next step.
Speak to UK Moneyman today and find out how much you could release from your existing property.
