Best Buy-to-Let Remortgage Rates in the UK: How One Landlord Navigated Mortgage Arrears and Rising Interest Rates

Customer Overview

A private landlord in his late 40s based in the South East of England approached us for assistance with a buy-to-let mortgage. Working in a semi-professional field, he owned multiple rental properties and aimed to secure better financial stability amidst upcoming mortgage changes and personal credit challenges. Seeking favourable buy-to-let remortgage rates was key to achieving this stability.

The Challenge: Mortgage Arrears and Expiring Fixed Rate

The landlord’s main issue was a fixed-rate deal on a buy-to-let mortgage coming to an end in January. He wanted to protect himself from possible interest rate hikes but had limited options due to recent mortgage arrears affecting his credit profile. As a result, switching to a new lender was not possible. He needed a solution that:

• Secured a competitive remortgage rate despite his credit history
• Didn’t require a credit check to avoid further complications
• Maintained affordability based on rental income
• Minimised early repayment penalties

The Solution: Strategic Product Switch within Existing Lender

After a personalised review, we recommended a 2-year fixed-rate product from the landlord’s current lender, Santander UK Plc, at a locked-in rate of 3.96% until January 2028. This allowed him to secure ideal buy-to-let remortgage rates that suited his needs:

• Avoid a full remortgage application and credit check
• Secure a new competitive rate without switching lenders
• Keep payments manageable compared to rental income
• Retain existing repayment terms with part capital and interest and part interest-only

Given the rising market rates, reviewing products with and without fees was also critical. To maintain a manageable monthly repayment figure, the landlord chose a product with a product fee of £1,749 added to the loan, helping reduce his ongoing costs.

Results: Preserved Affordability and Increased Flexibility

This tailored rate switch resulted in the landlord securing a much-needed sense of financial control during a turbulent market. Benefits gave him improved buy-to-let remortgage rates, which ensured:

• Monthly repayments reduced to £569.82 during the initial period
• Protection from future interest rate spikes through short-term fixation
• Avoiding hefty early repayment charges had he chosen a five-year term
• Preserved his long-term strategy by aligning with rental income and property sale plans

“This solution gave me peace of mind without having to worry about my credit file being a problem,” the client shared during a follow-up conversation.

Why Santander Was the Best Fit

Because switching to another lender would have triggered a full credit review — and the client had existing mortgage arrears — his only viable option was remaining with Santander. Their internal product switch mechanism avoided a hard credit check altogether, while granting access to a competitive rate and manageable loan structure. This was crucial for maintaining favourable buy-to-let remortgage rates.

FAQs

Can you remortgage to consolidate debt with bad credit?

In many cases, yes — though it often depends on your current credit score and situation. If you’re facing bad credit or arrears, your best option may be a product switch with your existing lender, which typically doesn’t require a new credit check. Exploring buy-to-let remortgage rates with your current lender can be beneficial.

What documents are required for a buy-to-let remortgage?

Documents typically include proof of identity, proof of rental income, a mortgage statement, and confirmation of any repayment vehicles (such as sale of property). If refinancing, a credit assessment and affordability checks will also apply.

How much are early repayment charges?

In the above case, charges were 2% of the amount repaid until January 2027 and then 1% until January 2028. It’s important to check these fees as they can affect your ability to switch again early.

Is it better to choose a 2-year or 5-year fixed buy-to-let remortgage?

The client in this case chose a 2-year deal to maintain flexibility and minimise penalty risks. A 5-year fix might offer longer-term security but often carries higher exit costs.

Can I switch parts of my mortgage to interest-only?

Yes, especially with buy-to-let properties. However, the strategy should match your ability to repay through a vehicle like property sale or other investments, and needs approval by the lender.

Secure the Best Buy-to-Let Remortgage for Your Situation

Every mortgage case is unique, especially when credit issues or expiring fixed rates are involved. At Deal Direct, we offer expert, no-obligation remortgage advice tailored to your individual needs. Whether you’re consolidating debts, refinancing a buy-to-let, or navigating credit complications, we can help. Exploring the current market for buy-to-let remortgage rates could be a great start.

Contact us today to explore your options, protect your investments, and secure your financial future with the right mortgage solution.