Buy to Let mortgages are generally more expensive than residential ones. That’s because lenders find them riskier, so they might cap the loan at around 75%.
You might have to readjust your deposit to at least 25%. Yes, even if the original residential mortgage had a 5–10% deposit with the same lender. There are early repayment charges to keep in mind as well.
That’s why some people choose to switch to Buy to Let mortgages only for properties that they’ve had for a long time. After a while, they manage to increase equity and reduce the mortgage amount with regular repayments.
Other costs to consider are the setup costs for the new mortgage. You might even end up with higher rates than what you were paying originally for the residential mortgage.
Don’t let that scare you away, though. Our team of expert advisors can help you navigate your way through the mortgage change and find the best deal for your circumstances. Call us today to get your remortgage journey started!