Skip Navigation Links. Remortgaging and further advances


Many landlords seek to maximise their profits by buying more properties to rent out and opt to release equity in their existing buy-to-let portfolio in order to fund new purchases. It is often seen as preferable to use mortgages instead of making cash purchases, because geared investment has the potential to deliver higher returns and spread risk. It is therefore quite common for landlords to remortgage on a regular basis to leverage their current buy-to-let investments.

If you are planning to use remortgaging as a means to expand your portfolio, you should be careful to choose mortgage products that have flexibility with regard to early repayment. Although most buy-to-let mortgages have early repayment charges applied during the initial rate period, there are products available without them, which may be useful when remortgaging. However, landlords often choose to wait until the initial rate period on their current mortgage has come to an end before remortgaging.

There are also specific remortgage products available which may include incentives such as a free valuation or no legal fees to pay. Therefore it is important to research the buy-to-let mortgage market thoroughly to compare rates and fees before selecting a product.

Further advances

Some buy-to-let lenders will consider additional borrowing against a mortgaged rental property up to a certain loan-to-value. Depending on the lender and the amount, these funds may be used for any legal purpose or specifically for property purchase or improvement. This is worth bearing in mind and could be a useful capital raising facility when expanding your buy-to-let portfolio.