Buy-to-Let Remortgage: Rates, Equity and Rental Tests

Remortgaging a buy-to-let means moving to a new deal, with your current lender or a new one, usually when your fixed rate ends. The big difference from a residential remortgage is that the rental test applies again, which can limit how much you can borrow.

When a buy-to-let deal ends, the mortgage usually moves onto the lender’s standard variable rate, which can wipe out your rental profit. Most landlords remortgage every two to five years, either to stay on a fixed rate or to release equity for the next purchase.

For how buy-to-let lending works more widely, see our complete buy-to-let mortgage guide.

When should you remortgage a buy-to-let?

Start about six months before your deal ends. That gives you time to check early repayment charges, rerun the rental test at today’s stress rates and compare your lender’s offer with others. Many lenders let you secure a rate months ahead, so you can move straight across when the deal ends and avoid the standard variable rate.

1. Six months before the deal ends: check the end date, early repayment charges and current rent.
2. Rerun the numbers against current stress rates before deciding how much to borrow.
3. Secure a rate with a new lender or your current one, and avoid the standard variable rate.

If you are thinking of moving before your deal ends, read our guide to remortgaging with an early repayment charge first.

Should you switch with your lender or move?

	Product transfer	Remortgage to a new lender
Rental test	Often not re-run if you are not borrowing more	Re-run at the new lender’s stress rate
Credit check	Often none	Yes
Borrowing more	Separate further advance, assessed again	Possible within the new mortgage
Legal work and valuation	Usually none	Usually needed
Rates	Your lender’s range	Deals from a wide range of other lenders

If rents have not kept pace with rates, a product transfer can be the only way to keep the loan at its current size without passing a new rental test. See our product transfer vs remortgage guide.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

How much equity can you release?

Many landlords remortgage to raise a deposit for their next property. How much you can release depends on two limits, and the lower one wins:

• Loan-to-value: usually up to 75% of the current value.
• Rental cover: the rent must cover the new, larger loan’s interest at the lender’s stress rate.

Five-year fixes tested at a lower rate, or lenders that allow top slicing with your personal income, can close the gap.

What will a new lender ask for?

• A current valuation, arranged by the lender, which also gives its view of market rent.
• Your tenancy agreement and evidence the rent is being paid.
• Your current mortgage statement and any early repayment charge.
• Proof of personal income, as many lenders want a minimum.
• A property schedule if you own other rentals.

What if you are a portfolio landlord?

If you have four or more mortgaged buy-to-lets, a new lender will assess your whole portfolio. Expect to provide a property schedule with values, rents and mortgages, and sometimes a business plan. See our portfolio landlord guide.

Can you move a property into a limited company when you remortgage?

Transferring a property from your own name to a company is a sale. It usually means a new mortgage, Stamp Duty at the higher rates and possibly Capital Gains Tax. See GOV.UK’s guidance on Stamp Duty for additional residential property and tax when you sell property. It is rarely worth it without specialist tax advice. See our limited company buy-to-let guide.

What tax points should you know?

• Arrangement fees on a buy-to-let mortgage are usually a finance cost.
• If you release equity, the tax treatment of the extra interest depends on what the money is used for. GOV.UK covers the basics in its guide to paying tax on rental income.
• From April 2027, property income rates rise in England, Wales and Northern Ireland. See our buy-to-let tax guide.

Frequently asked questions

Speak to Option Finance about your buy-to-let remortgage

Tell us the property value, rent, current balance and when your deal ends. We will tell you straight whether to stay or move, and how much you could realistically release.

Our broker fee is £499 in total: £299 on application and £200 when a mortgage offer is issued. The £299 is fully refundable if the application is declined.

Book a free initial consultation using the enquiry form below. See our buy-to-let mortgage advice, our portfolio landlord guide and our product transfer vs remortgage guide.