Best Buy to Let Remortgage Rates UK: How One Landlord Locked In a Lower Fixed Rate to Maintain Rental Returns

Customer Snapshot: Midlife Landlord Seeking Stability

A professional in his early 50s from southern England approached us for assistance with his buy-to-let mortgage. As an experienced property investor, his main goal was to reduce ongoing mortgage costs while maintaining flexibility for a possible property sale in the near future. He sought the best available remortgage rates across the UK.

The Challenge: End of Current Fixed Rate Approaching

The customer held a buy-to-let mortgage on an investment property with Santander, which was nearing the end of its fixed-rate term. With interest rates on the rise, he wanted to secure a more competitive fixed rate to avoid future increases, while preserving his monthly income from rent by keeping mortgage repayments as low as possible. He wasn’t seeking to change the loan amount or term and made it clear that convenience and speed were important to him when exploring remortgage rates in the UK.

Our Solution: A Tailored Buy-to-Let Remortgage Plan

We explored deals from multiple lenders but ultimately recommended a new 2-year fixed rate at 3.96% from Santander, enabling a smooth transition without the need for a full remortgage application with a new lender. This option matched his preference to stay with his current lender and allowed for quick arrangement before the existing deal expired. This solution offered competitive buy to let remortgage rates in the UK market.

Why This Mortgage Was Chosen:

• Flexibility: A 2-year fixed rate offers security now, with the flexibility to sell in the near term without high penalties.
• Low Monthly Payments: Selecting an interest-only repayment option kept monthly costs at £1,028.56—maximising rental yield.
• Conservative Fee Control: The client agreed to pay a £1,749 arrangement fee as it resulted in a lower overall monthly payment, and this fee was added to the loan for convenience.
• Risk Awareness: We ensured the customer was aware of early repayment charges should he decide to switch before the fixed-rate ends.

By staying with Santander, the process was simplified and completed in time to lock in a better rate before market changes could impact his profitability and ensured favourable buy-to-let remortgage rates within the UK.

Results: Immediate Savings and Long-Term Flexibility

By remortgaging before his current rate expired, the customer ensured smooth continuity in payments and a fixed, predictable monthly cost. Monthly payments will remain low for two more years, securing a total payment of £1,028.56 per month (on an interest-only basis). This protected income flow from the property’s rental revenue, and the customer avoided unnecessary hassle or delays from switching lenders, benefiting from some of the best buy to let remortgage rates available in the UK.

Client Feedback: “I didn’t want to overcomplicate things just to save a bit. This deal locked in a better rate quickly and let me keep my options open. The whole process was really straightforward.”

FAQs

Does remortgaging affect my credit score?

Remortgaging typically involves a credit check and may cause a small, temporary dip in your credit score. However, consistent payments and improved financial outcomes usually offset this over time.

What documents are required for a remortgage application?

Typical documents include proof of identity, proof of income (e.g., payslips or rental income records), existing mortgage statements, property details, and sometimes tax returns if self-employed or using rental income.

Can I repay a fixed-rate mortgage early without penalties?

Usually, fixed-rate mortgages include early repayment charges (ERCs). In this case, 2% applies before January 2027, reducing to 1% before January 2028. Always check your specific mortgage terms.

Is interest-only a good option for a buy-to-let mortgage?

Interest-only can help landlords maximise rental income while deferring full repayment until the property is sold. However, it’s crucial to have a strategy to repay the capital at the end of the term.

Can I switch lenders when remortgaging?

Yes, you can remortgage to a different lender if better rates or terms are offered. In this case, the customer preferred staying with their current bank to simplify the process and ensure timely completion.

Ready to Secure a Better Buy-to-Let Deal?

Whether your current fixed rate is ending or you’re interested in maximising rental profit, we can help you find the best buy to let remortgage rates in the UK. Let our experienced brokers handle the paperwork and lender negotiations so you can focus on your investment returns.

Contact us today for a free remortgage consultation. Find out how much you could save with our remortgage calculator or speak with a trusted advisor now.