Stick or Twist: The End of Your BTL Fixed Rate Mortgage

If you’re a buy-to-let (BTL) landlord, you may be wondering whether to remortgage or opt for a product transfer (PT). While this choice can be more straightforward for residential borrowers, the options for BTL landlords have historically been more complex. However, with more PT opportunities now available, landlords have greater flexibility when refinancing.

Product Transfers: A Quick and Cost-Effective Choice

A product transfer involves switching to a new deal with your existing lender, often with minimal paperwork and no legal fees. This means the speed of PTs are significantly quicker than remortgages. It also offers cost savings, with no legal fees and, in the majority of cases, no property valuation costs. Additionally, PTs provide ease, as staying with the same lender eliminates the need for extensive checks or paperwork.

Many lenders now offer automated valuation models (AVMs), removing the need for a physical valuation in some cases. Therefore, landlords can choose an AVM to streamline the process or opt for a physical valuation if necessary.

Remortgaging: Shopping for the Best Deal

Remortgaging, on the other hand, allows you to switch to a new lender, potentially accessing better interest rates or loan terms. This option provides more choice, as you are not limited to your current lender’s products. It also offers the opportunity for competitive rates. While product transfer rates can be attractive, there may be better deals available in the wider market. Additionally, remortgaging provides flexibility, allowing you to adjust loan terms, borrow additional funds, or switch to a more suitable product.

However, remortgaging requires a new application, legal work, and sometimes a physical valuation, making it a longer and potentially more expensive process than a product transfer.

Which Option Is Right for You?

Every situation is unique. You may prefer the speed and simplicity of a PT, or you may find that remortgaging offers a better deal. If you own a house in multiple occupation (HMO) or a multi-unit freehold block (MUFB), your options for PTs may be more limited, making it even more important to explore refinancing solutions early.

With PT options opening up for BTL landlords, it’s crucial to review your choices before your fixed term ends. Get in contact to ensure you secure the best solution for your property portfolio.