What happens if you do nothing
Every fixed rate has an end date. From the day after, the loan sits on the lender's revert rate, often called the standard variable rate. On buy to let mortgages that revert rate is commonly between 7% and 9%. On a £180,000 interest only loan, a fix at 3.94% costs £591 a month. The same loan on a revert rate of 8.24% costs £1,236 a month, which is £645 more. Even one or two months on the revert rate can cost more than the fees on a new product, which is why the end date is worth diarising early.
The two routes
A product transfer means staying with the current lender and moving onto one of its new rates. There is usually no new valuation, no conveyancing and little underwriting, so it can complete in days. The trade off is that the choice is limited to that one lender's range, and the loan amount normally stays the same.
A full remortgage means moving the loan to a new lender. It involves a full application, a valuation and legal work, and typically takes 4 to 8 weeks. The gain is access to the whole market, and the option to change the loan size, for example to release equity for the next purchase or to repay a lump sum.
A timeline from six months out
- 6 months before the end date. Note the exact expiry date and the revert rate from the original offer. Many lenders allow a new deal to be secured up to 6 months ahead, so the market can be reviewed this early without cost.
- 4 to 5 months out. Compare the current lender's transfer rates with the wider market. This is where a broker earns their keep, because the comparison has to include fees, not just headline rates.
- 3 to 4 months out. If remortgaging, submit the full application. This leaves room for a valuation queue, extra document requests or a down valuation without drifting onto the revert rate.
- 6 to 8 weeks out. Offer typically issued. Solicitors handle redemption statements and the legal transfer.
- Completion, timed to the end date. Most lenders will align completion so the new rate starts the day the old one ends, avoiding any early repayment charge and any time on the revert rate.
What the new lender checks
A buy to let remortgage is underwritten like a purchase. The lender stress tests the rent against the new loan, typically requiring rent of 125% of the interest at the stress rate for limited companies and basic rate taxpayers, and around 145% for higher rate taxpayers in personal names. On a £180,000 loan at a stress rate of 5.5%, interest is £9,900 a year, so a 125% test needs rent of £12,375 a year, which is about £1,031 a month. Our buy to let affordability calculator shows the maximum loan a given rent supports. Lenders also revalue the property, check the tenancy agreement, and review the applicant's credit and, for limited companies, the company structure.
What decides marginal cases
If rents have not kept pace with the loan, the stress test can cap the new loan below the current balance. Options then include a lender that stresses at the pay rate on a 5 year fix, using surplus personal income under a top slicing policy, or a product transfer, since transfers with no extra borrowing often skip the full stress test. A down valuation has a similar effect, because the loan to value moves and the rate band changes with it.
What slows remortgages down
The common delays are slow redemption statements from the outgoing lender, missing tenancy agreements or proof of rent, unresolved maintenance flagged at valuation, and licensing questions on HMOs. A realistic week by week picture of the process is set out in our guide to how long a buy to let application takes. Starting six months out means none of these delays forces time on the revert rate.
Related questions
When can I lock in a new rate before my fix ends?
Most lenders allow a new product to be secured 4 to 6 months before the current deal ends. If rates fall after securing it, many lenders and brokers can switch the application to a cheaper product before completion.
Is a product transfer cheaper than a remortgage?
Not automatically. Transfers avoid legal and valuation costs and complete quickly, but the rate is limited to one lender's range. A full remortgage across the market sometimes beats the transfer rate by enough to cover the costs, and sometimes it does not. The comparison has to include all fees.
Will I pay an early repayment charge?
Only if the new loan completes before the current fixed period ends. Completion is normally timed to the end date so no charge applies. Some products also have exit or discharge fees of around £100 to £300 which apply regardless of timing.
Do I need a solicitor to remortgage a buy to let?
For a full remortgage to a new lender, yes, though many products include free legal work for the standard transfer. A product transfer with the same lender needs no solicitor.
What if the rent no longer supports the loan?
Some lenders stress 5 year fixed rates at the pay rate, which supports a larger loan than a stressed shorter fix. Others use surplus personal income to top slice. If neither works, a product transfer usually avoids a fresh stress test where no extra borrowing is taken.
Talk it through with us
Every case is different. Call us, message us on WhatsApp, or send us the basics and one of our team will come back to you about buy to let remortgages, usually the same working day.