Best Buy to Let Remortgage Rates UK: How One Property Investor Secured a Low Fixed Interest Deal

Property Investor Profile

A middle-aged professional based in the South of England recently looked to expand his buy-to-let portfolio. Already owning one rental property without a mortgage, he aimed to purchase a second investment property while ensuring maximum rental yield through efficient financing. His goal was a cost-effective solution with the flexibility to refinance in the near future.

Challenges Faced by the Client

As a seasoned property investor, the client had specific needs that had to be matched with a suitable mortgage product:

• Maximising Cash Flow: He was seeking a product with low monthly repayments to improve overall rental income.
• Short-Term Fixed Rate: He preferred a 2-year fixed-rate mortgage, hoping interest rates would decrease in the near term, offering a chance to remortgage with better terms later.
• Versatile Terms: He needed a mortgage that would allow fee additions to the balance and offer features like portability and annual overpayment allowances.
• Interest-Only Strategy: The client preferred interest-only repayments to keep costs low, planning to repay the principal through eventual property sale.

The Tailored Buy-to-Let Remortgage Solution

After a detailed consultation and comparison of products, our mortgage advisors recommended a product from BM Solutions offering the most competitive terms based on the client’s objectives.

Mortgage Summary:

• Loan Type: Interest-Only Buy-to-Let Mortgage
• Loan Amount: £75,000
• Term: 25 years
• Fixed Rate: 2.95% until December 2027
• Monthly Payment During Fixed Term: £189.44

While another lender initially showed a lower overall cost, BM Solutions offered a better fixed rate, leading to significantly lower monthly costs, aligning with the client’s desire to protect immediate rental profits. Additionally, the mortgage was chosen for its portability, fee flexibility, and the ability to make up to 10% annual overpayments with no penalty.

Key Benefits and Results Achieved

• Low Monthly Costs: The initial monthly payment of only £189.44 preserved a strong rental yield.
• Financial Flexibility: The 2-year fixed-term gave flexibility to remortgage sooner if market rates fall.
• Debt-Free Entry: No prior mortgage meant the loan approval was cleanly executed based on strong affordability metrics.
• Exit Strategy Aligned: Interest-only terms matched the investor’s goal of selling in the long term to repay the capital.

“I wanted to maintain high rental income while keeping my options open if interest rates dropped later. Deal Direct got me exactly what I needed — minimal monthly costs and room to move if rates improve.”

Frequently Asked Questions (FAQs)

How do I find the best buy-to-let remortgage rates in the UK?

Working with a whole-of-market broker helps you compare rates from different lenders, factoring in fees, term length, and features. Rates like 2.95% fixed from BM Solutions are competitive for investors with strong profiles and EPC-compliant properties.

Can I remortgage with fees added to the loan?

Yes, many lenders allow arrangement or legal fees to be added to your mortgage. It increases the long-term cost slightly due to interest but helps reduce upfront expenditure.

Can I get an interest-only buy-to-let mortgage?

Yes, especially for investors. Interest-only is common in buy-to-let as it keeps monthly payments lower, with repayment often planned through property sale.

What happens if I want to repay the mortgage early?

This mortgage product includes early repayment charges: 2% of the loan if repaid before December 2026 and 1% before December 2027. Overpayments up to 10% annually are allowed without penalty.

Does the EPC rating matter?

Yes. Many lenders now require minimum EPC ratings (often ‘C’ or above) for eligibility. This client’s property met the requirement, unlocking better rates.

Start Your Buy-to-Let Remortgage Journey Today

Whether you’re expanding your portfolio or looking to reduce monthly repayment costs, Deal Direct Financial Solutions can help you access the best buy to let remortgage rates UK offers today. Our experts guide you from application to offer, ensuring you save time, money, and stress.

Call us on 02392 006 428 or click below to get a free, no-obligation consultation tailored to your investment goals.

Start Your Remortgage Quote Now