Best Buy to Let Remortgage Rates UK: A Smart Solution for Landlords with Poor Credit

Landlord Overcomes Credit Challenges with Smart Remortgage Switch

A middle-aged landlord in the South of England recently faced an uphill struggle: his Buy to Let mortgage deal was nearing its end, and rising interest rates posed a serious threat to his rental income.

Added to this challenge, previous mortgage arrears and a limited credit profile restricted his remortgaging options, particularly in seeking a Buy to Let remortgage with poor credit. Fortunately, an expert solution allowed him to secure a competitive new rate, protect his rental income, and avoid a new credit check altogether.

Customer Overview

The customer, a professional landlord in his late 40s, manages several rental properties in the South of England. His fixed Buy to Let mortgage was due to expire in January, leaving him exposed to potential rate hikes in a high-interest climate. On top of this, his recent mortgage arrears meant many lenders would not consider his application for a traditional remortgage, particularly in trying to achieve a Buy to Let remortgage poor credit option.

Primary Challenge: Limited Lender Options Due to Credit Issues

With the fixed rate on one of his Buy to Let properties concluding soon, the customer needed to act fast to secure a new deal. However, the following factors complicated his search:

• Recent mortgage arrears impacting his credit profile
• Lenders unwilling to offer a remortgage without a credit check
• Desire to avoid lender fees and early repayment penalties if interest rates dropped
• Need to preserve cash flow from rental income with affordable payments

The Solution: Strategic Rate Switch with Existing Lender

Instead of remortgaging with a new lender, our mortgage advisors recommended a product transfer—also known as a rate switch—with the landlord’s existing provider, Santander. This solution provided several major benefits:

• No credit checks: Santander allowed the switch without a new credit assessment, critical given his arrears and poor credit in the Buy to Let context.
• New 2-year fixed rate of 3.96%: Locked in a favourable deal before additional rate hikes
• Flexible product fees: Chose a low-rate option with a product fee added to the mortgage for minimal up-front cost
• Partial capital repayment: Maintained his existing setup: part repayment, part interest-only, aligned with rental income

“I knew my credit history was a sticking point, but the team found the best way forward without the stress of another credit search,” the customer said. “The switch was smooth, and I’m relieved to keep my rental cash flow steady.”

Key Results: Managed Risks, Protected Income, and Avoided Penalties

Thanks to the tailored advice and product selection, the customer achieved several important outcomes:

• Locked in a fixed rate of 3.96% before rates rise further, demonstrating a smart buy to let remortgage strategy despite credit challenges.
• Avoided early repayment penalties from a 5-year fix—he favors shorter commitments
• Maintained affordable payments: Starting from £582.06 monthly, even post-fix payments remain manageable
• Preserved rental profitability: No jump in mortgage outgoings keeps rental unit profitable

Real Quote from the Landlord

“The rate switch saved me from a huge interest hike, and I didn’t have to go through another credit check. That option simply didn’t exist with other lenders right now.” He found relief in the new financial arrangement despite the previous poor credit associated with his Buy to Let mortgages. Finding a suitable Buy to Let remortgage despite poor credit was a relief.

FAQs on Buy to Let Remortgaging with Credit Challenges

Can I remortgage my Buy to Let property with bad credit?

While options may be limited, yes—you may still secure a deal via a product transfer with your existing lender. These don’t typically require a new credit check and can offer competitive rates even when seeking a Buy to Let remortgage with poor credit.

Is a rate switch the same as a remortgage?

No. A rate switch is a product transfer with your current lender, whereas a remortgage involves moving your deal to another lender. A switch can be ideal if your credit profile limits external options.

Are there early repayment charges for Buy to Let mortgages?

Yes. In this case, the customer would pay 2% in the first year, 1% in the second if repaid early. These are standard terms—always check before committing.

Will I save money with a 2-year fixed rate?

You’ll benefit from short-term stability, especially in a rising rate environment. However, 2-year rates may come with higher fees and early repayment penalties—consider your long-term goals.

Can I use rent from my Buy to Let to cover mortgage payments?

Yes. Most Buy to Let mortgages are designed to be self-financing. Lenders require rental income to exceed mortgage interest by a set percentage. In this case, the structure aligned perfectly with rental income.

Secure Your Buy to Let Future with Our Expert Guidance

If your Buy to Let deal is ending soon and credit concerns are limiting your options, our expert brokers can help you find the best buy to let remortgage rates in the UK even when specialist lenders aren’t an option. Avoid lender rejections, rising rates, and complex fees with the right advice on managing poor credit.

Contact us today to discuss your Buy to Let options and secure your financial stability. We work across the whole market to get the best fit for your needs.