In 2026, buy-to-let is still a worthwhile investment if you buy carefully and know your numbers. With rising mortgage rates, tighter lender criteria and narrower profit margins, there is no room for guesswork. That’s why remortgaging carefully is essential to protect your investment.
When remortgaging your BTL property, it’s important to look beyond the rate and consider rental income, lender stress tests, fees, early repayment charges, equity, monthly repayments and whether the new deal supports your investment plans.
So, if your current deal is ending, your rental income is being squeezed, or you want to release equity to kickstart a wider property portfolio, read on for some helpful advice from YesCanDo Money.
For advice on a new buy-to-let mortgage, get in touch with our friendly team today.
Why remortgage my buy-to-let?
There are a few reasons that landlords look to remortgage buy-to-lets. Let’s look at the most common.
Your current BTL mortgage deal is ending
If your current buy-to-let mortgage deal ends within the next six months, it is sensible to start reviewing your options now.
Leave it too late, and you could move onto your lender’s Standard Variable Rate (SVR), which is often much higher than a fixed or tracker deal. Even a short spell on a higher rate can put a noticeable dent in your rental margin, especially if your costs have already risen.
To reduce your monthly repayments
Remortgaging can reduce your monthly repayments, but it is not guaranteed. It’s important to look beyond the monthly saving and work out the true cost of switching. Add up any early repayment charges, product fees, valuation fees, legal costs and broker fees, then compare that against the amount you expect to save each month.
Also remember that the lowest headline rate is not always the best deal. A slightly higher rate may work out more affordable overall if it has lower fees.
To release equity
If your buy-to-let property has increased in value, or your mortgage balance has reduced, you may be able to release equity when remortgaging.
Landlords often remortgage for this very reason. The released equity can be used to purchase additional properties or to make improvements to existing ones to achieve an increase in rental yields.
To move from consent to let on to a proper BTL mortgage
Consent to let is when your lender gives you permission to rent out a property that still has a residential mortgage on it. Many people do this if they move in with a partner, relocate for work, or inherit another home, for example. It is usually a temporary arrangement, with set conditions.
If renting out the property has become a permanent plan, or your consent period is ending, or you want to release equity, it may be time to move to a buy-to-let mortgage.
If you don’t, you could risk breaching your mortgage terms, so it’s sensible to review your options before your lender forces the conversation.
Read more on changing your residential mortgage to a buy to let mortgage.
Remortgaging a BTL property – key considerations
Remortgaging a rental property isn’t quite the same as refinancing your own home. To help you secure the best possible deal and protect your profits, ask yourself these seven key questions.
1. Is your buy-to-let still profitable on the new mortgage rate?
This is the big one.
The days of sub-2% mortgages are gone. When you swap your old fixed rate for a new one, your monthly repayments will likely increase. A rental property that made sense three years ago may not be as profitable once the new mortgage interest rate kicks in, especially if rent has not increased at the same pace.
Before you commit, check how much money the property will actually leave you with each month. Start with your rental income and subtract all monthly costs, such as mortgage repayments, letting agent fees, repairs and maintenance, insurance, tax and services charges.
2. Will the rental income pass the lender’s stress test?
With a residential remortgage, lenders focus on your personal income and spending. With a BTL mortgage, they look at whether the income from rent is enough to cover the mortgage payments, even if the interest rates take a hike
Known as ‘stress testing’, most lenders apply an Interest Coverage Ratio (ICR) (typically around 5.5%) to the mortgage to see whether it is still affordable. Usually, they require that your rental income covers the hypothetical “stressed” interest rate by:
- 125% if you own the property via a limited company or are a basic-rate taxpayer,
- up to 145% if you are a higher-rate taxpayer.
If your rent hasn’t kept pace with the current market, you might need to adjust it to pass the test.
This is where landlord applications can become frustrating. One lender may say no, while another may be more comfortable with the same rental property. It depends on lender rules, the interest rate used in the calculation, the mortgage term, whether the borrowing is interest only, your credit history and the property itself.
3. How much equity do you have, and what do you want to do with it
Property growth over the last few years means you might be sitting on a fair bit of equity. If so, the lower Loan-to-Value (LTV) ratio usually unlocks better interest rates, often competitive up to 75% – 80% LTV. Happy days.
But you might consider releasing that equity to fund a minimum deposit on another rental property or to refurbish an existing property. To do this, you need a capital raise remortgage to extract the equity as cash.
When remortgaging a buy-to-let property to release equity, lenders assess your mortgage application based on the intended use of the capital, which can affect borrowing limits and terms.
A mortgage broker can help match your purpose for releasing equity with a lender that allows capital raising for that reason, while checking the rental income, loan-to-value and affordability still stack up.
Just remember: released equity is extra borrowing, not free money. Used sensibly, it can be useful. Used casually, it can become expensive.
4. Should you stay with your current lender or move to a new one?
When your deal ends, you have two paths. You could opt for a product transfer with your current lender, which involves minimal paperwork and is usually simpler and quicker, with no new legal or valuation fees.
However, there could be a better deal out there for you with a new lender, perhaps one with better criteria, or more flexibility. Although that will mean making a brand-new application, going through affordability checks, and completing legal and valuation work.
So it’s a case of comparing what your existing lender offers against what’s available in the market. For busy landlords, it’s often tempting to stick with what you know. But a broker can shop around for mortgage products on your behalf. If they work on a fee-free basis, like YesCanDo Money, then all the better.
5. What will the remortgage actually cost?
When remortgaging a BTL, it’s important not to fixate on finding the lowest interest rate, but to take into account the fees.
Buy-to-let mortgage fees are generally higher than residential ones, including flat arrangement fees or a percentage of the loan value, sometimes up to 2% to 5%. They can range from a few hundred pounds to several thousand pounds, depending on the lender and mortgage product.
Also factor in valuation and legal fees. Valuation fees for a buy-to-let mortgage can range from a few hundred to over a thousand pounds, depending on the property’s value and location, although many lenders offer free valuations as an incentive.
Calculate the total cost over the fixed term (fees + interest) to find the true cheapest deal.
6. Does your property or landlord status make things more complicated?
While some buy-to-let cases are straightforward, others have a few more moving parts.
You may need more specialist advice if:
- A first-time landlord – Some lenders prefer applicants with previous experience.
- A portfolio landlord – Lenders might assess your whole portfolio, not just one property.
- Buying through a limited company – Eligibility criteria, tax treatment and lender options can differ.
- Dealing with an unusual property type – Some lenders avoid non-standard homes, such as flats above shops, high-rise blocks, and homes with unusual construction.
- Letting an HMO or multi-use building – These properties often need specialist lenders, and borrowers can undergo stricter checks.
- You have an imperfect credit history – When assessing a buy-to-let remortgage application, lenders will consider the applicant’s credit history, with a better credit profile leading to more favourable rates.
7. Could remortgaging help you grow your property portfolio?
Remortgaging can be a good growth strategy if the timing is right. By restructuring your debt, moving properties into a Limited Company SPV for better tax efficiency, or releasing equity to fund new purchases, a smart remortgage can help you grow a thriving property portfolio.
But, a word of caution: every new property needs to make financial sense on its own. The rental yields need to work. The mortgage repayments need to be manageable. You also need to factor in maintenance, void periods, landlord insurance, tax and changes in the buy-to-let market.
Buy-to-let remortgage case study – how we helped an aspiring portfolio landlord
Sarah had been successfully managing a rental property she inherited and was ready to take the next step: using that property to help fund a second investment.
The challenge was that her bank’s mortgage adviser wasn’t familiar with the type of buy-to-let remortgage Sarah needed. Rather than risk delays or choosing the wrong product, Sarah found YesCanDo Money online and approached us for specialist help.
We connected her with a broker who understood both sides of the plan: remortgaging the existing property and arranging the mortgage for the next one. He helped Sarah release funds from her current property and secure an exceptional deal on her new rental property. What’s more, he helped her put more comprehensive landlord insurance in place.
Sarah was delighted and felt able to proceed with confidence. Her second property now provides her with another income stream, greater long-term investment potential, and a stronger foundation for whatever she decides to do next.
Speak to a mortgage broker about your buy-to-let remortgage
For tailored buy-to-let remortgage advice, speak to YesCanDo Money. Our friendly, fee-free mortgage brokers will compare suitable deals, explain your options in plain English, and help you find a mortgage that supports your rental income, equity plans and long-term property goals.
Contact us by completing our online form, or WhatsApp us a question.
For more advice, browse our buy-to-let guides.
Frequently asked questions about remortgaging a buy-to-let property
What is a buy-to-let remortgage?
A buy-to-let remortgage is the process of replacing the existing mortgage on a residential property you rent out with a new one, either from your current lender or a different provider.
How do mortgage rates affect buy-to-let remortgaging?
Mortgage rates matter. No great shock there. A lower rate can reduce monthly repayments and improve cash flow. A higher rate can squeeze profit, especially if rent hasn’t increased at the same pace. Rates matter even more if you have an interest-only mortgage, because your payments are driven by the interest rate rather than capital repayment.
Higher mortgage rates are typical for buy-to-let mortgages compared to residential mortgages, as they are considered commercial products.
When should I start looking for a remortgage deal?
Start looking around six months before your current deal ends. That gives you time to compare remortgage rates, check any early repayment charges, gather paperwork and avoid sliding onto your lender’s SVR.
How much equity do I need in my BTL property to release funds?
The typical maximum loan-to-value (LTV) ratio for a buy-to-let mortgage is 75%, meaning landlords usually need at least 25% equity in the property to release funds. Many landlords use equity from their investment properties to cover business costs or expand their portfolios, such as purchasing additional properties or improving existing ones.
What are early repayment charges on buy to let mortgages?
Early repayment charges (ERCs) may apply if you remortgage while still within a fixed or discounted rate period, and these charges can be a significant expense, often calculated as a percentage of the outstanding mortgage balance.
