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Buy To Let Re-mortgage
As with any kind of borrowing, it pays to review your mortgage options from time to time and make sure you're getting the best deal you can. In the current climate, with lenders falling over each other to attract custom, there are plenty of excellent buy to let remortgage deals out there waiting to be taken advantage of. And holders of buy-to-let mortgages have at least much to gain from shopping for a better deal as anyone else.
In fact, if you have owned your buy-to-let property for more than a few years it will almost certainly have been financed by a commercial mortgage, with significantly higher repayments than a residential mortgage. However, before looking around it is important to make sure you won't be losing out by switching lenders.
If your original mortgage was taken out within the last five years or so, check the small print of your mortgage agreement to make sure you won't pay penalties for closing your account and getting a buy to let remortgage. For example, many fixed rate deals are conditional on remaining with your lender for a specified period. Sometimes this period can last longer than the period for which your rate is fixed. The penalties involved if you repay your mortgage early can sometimes amount to thousands of pounds, potentially wiping out any advantage you might get by remortgaging. Also, if your deal included a cashback element you will probably be required to pay back part of this if you don't stay with the lender for the minimum period specified in your agreement, so remember to factor that into your calculations.
Even if you're sure you won't be liable for early repayment charges you should check out with any prospective buy to let remortgage lender just what fees and charges you will be required to pay. Many lenders offer to pay legal fees for you, but only if you agree to use the convancers they specify. If you don't agree, you will have to pay your own fees. And remember, whenever you transfer your mortgage from one lender to another your original lender will also require legal expenses to be paid. If the original lender does not agree to use your new lender's conveyancers, you will almost certainly have to foot the bill for that yourself. Provided you have satisfied yourself on all these points - and that you stand to gain more than you lose by going for a remortgage - you will be in a position to reap the generous rewards handed out by lenders who are desperate for your custom.
