Buy to let remortgages: The facts
Whether you are looking to reduce the costs of your monthly repayment on your buy to let mortgage, or you want to raise cash for further investments, buy to let remortgages offer a great way for you to boost your profits.
With the recent boom in the property market, these are good times for property investors. Many people have made a lot of money from their propertiess and who can blame them for cashing in on there wise investments. However, if you do decide to sell your investment property, be prepared to pay £40,000 Capital Gains Tax for every £100,000 you made.
This is a significant outlay for anybody and savvy investors are finding ways to benefit from there investments without surrendering almost half their profits to the Government. Buy to let remortgages provide a quick, easy and legal way to do this.
In fact, availing of a buy to let mortgage will probably save you money anyway. Almost everybody who looks to re mortgage finds that there is a better deal out there somewhere offering better interest rates.
Most likely, the percentage of the property value you need to borrow for your buy to let remortgage is much lower than the percentage of your original buy to let mortgage. Because of this you should be able to be able to find a much lower interest rate than you pay on your current mortgage.
In addition, the amount you can borrow with buy to let remortgages and mortgages depends on the value of the home you are going to rent and the estimated income the property will earn. Since property values and rents have risen significantly in recent times, you will be in a position to borrow a significant amount of money. This is ideal if you want to free up cash for yourself or for further investments, and you will not be subject to Capital Gains Tax.
As with standard mortgages, there are all kinds of buy to let remortgages on the market. You can choose between fixed rate buy to let remortgages, variable interest rate buy to let remortgages, capped buy to let remortgages, UK limited company buy to let remortgages and non resident buy to let remortgages.
The fixed rate and variable interest rate buy to let remortgage options are fairly self explanatory. Capped rate buy to let remortgages act like a variable rate remortgage but are guaranteed not to go above an agreed interest rate.
Since many property investors set up a company, lenders offer UK limited company mortgages and remortgages. These are special loans that can be taken out by a company and can have different features and criteria for qualifying for the loan.
Finally, non resident buy to let remortgages and mortgages allow UK expats and non UK nationals to take out loans to buy property in Britain.
Buy to let remortgages offer excellent flexibility whether you are in capped rate mortgages or have a fixed rate loan, and can be an excellent choice for the savvy property investor.
