Customer Overview
An experienced female landlord in her mid-50s, based in the South of England, recently approached us as her existing 5-year fixed-rate buy-to-let mortgage with NatWest was coming to an end. Managing property rentals is her key income stream, and maintaining stable, predictable outgoings is a top priority.
Challenges: Remortgaging for Long-Term Financial Stability
As the fixed term on her buy-to-let mortgage was nearing its conclusion, the customer was keen to:
- Secure a new fixed-rate product to maintain predictable monthly payments
- Keep the mortgage interest-only to maximise rental yield
- Avoid unnecessary fees or complications from switching lenders
- Ensure portability in case of future property changes
The client’s main concern was balancing simplicity and cost-efficiency without compromising on the stability a fixed-rate mortgage offers—especially in an uncertain interest rate environment.
Our Mortgage Solution: A Simple, Fee-Free Fixed-Rate with the Same Lender
After a thorough review of her financial goals and mortgage options, we recommended staying with her current lender, NatWest, but switching to a competitive 5-year fixed rate at 4.34% with no associated product fees.
Why This Solution Was Ideal:
- Interest-only repayment—keeping monthly costs low to maximise rental income
- Fee-free product—no arrangement, legal, or valuation fees to pay
- Portability—the mortgage can be transferred to another property in the future
- Fixed to December 2030—offering long-term peace of mind
- Instant monthly payment of £144.94—remaining affordable and sustainable
Affordability and Forward Planning
We assessed affordability based on current rental income and expected future rates. Even under a scenario where interest rates rise by up to 3%, the increased monthly payment of £333.03 remains within feasible limits for the client due to her rental yield planning.
Strategic Use of Interest-Only Option
The customer opted to repay the loan via the future sale of the property—an acceptable and commonly used repayment vehicle in the buy-to-let sector. This allows her to access income now while planning a realistic exit strategy.
Positive Outcomes
- Zero additional costs from lender or broker
- 5 years of payment certainty in a volatile financial market
- Lower monthly payments allow for greater rental income retention
- Simple process with no switching lender admin hassle
Client Feedback
“I appreciated that everything was kept simple—no extra fees, minimal paperwork, and I get five years of stability with a lender I trust. That’s exactly what I needed right now!”
Frequently Asked Questions
Can I remortgage a buy-to-let property without switching lenders?
Yes, many current lenders—including NatWest—offer product transfer options that let you stay with them while securing a new rate. This can reduce paperwork and fees.
Is an interest-only buy-to-let mortgage a good idea?
For landlords focused on high rental yield and long-term property growth, an interest-only solution can offer flexibility and profitability—especially with a planned exit such as the sale of the property.
What are the early repayment charges on fixed-rate buy-to-let mortgages?
These vary by lender and duration. In this case, the early repayment charges start at 4.5% and gradually reduce to 1% by the last year of the fixed-rate term ending Dec 2030.
Can I overpay on my mortgage early?
Yes—many lenders, including NatWest, allow up to 20% overpayment per year without penalty. This can help reduce your overall mortgage balance and interest paid over time.
What documents do I need for a buy-to-let remortgage?
You’ll typically need proof of income (rental and other), your current mortgage statement, identification, and details of your repayment plan (e.g., sale of property).
Secure Your Buy-to-Let Remortgage Today
Looking to keep your rental income high, payments predictable, and the process stress-free? At Deal Direct Financial Solutions, we specialise in helping landlords like you find the best buy-to-let remortgage rates in the UK that match your goals.
Call us today or get a no-obligation quote now. Make your remortgage work harder for you—and your property portfolio.
