With the 3% surcharge introduced in March 2016, many
landlords rushed to seek new mortgages to avoid paying extra Stamp Duty Land
Tax (SDLT), whether that was on a new buy-to-let property or a second home.
As a result, those that did get a mortgage before the surcharge was put into action, were likely placed onto a two-year fixed deal and will shortly be coming to the end of that deal.
Can't I just remortgage onto another cheap deal?
That may very well be the case but, if you're a buy-to-let landlord that is coming up to the end of your fixed deal, remortgaging may be a little more difficult than it has been in the past.
Due to changes in lending that have been brought in since 2016, the criteria that lenders look for borrowers to meet is now much stricter.
That is because when compared to two years ago when the
attractive mortgage deals were agreed, there are now much tighter lender
criteria that may prevent landlords from securing new deals.
If this were to happen to you, then you would have to be put onto your current lender's standard variable rate (SVR), meaning you could end up unnecessarily overpaying on your buy-to-let mortgage.
However, it's not all bad news.
You could still be placed onto a different rate or product with the lender that you're currently on, though this is likely to limit your options in terms of cost.
And there are still brokers, such as The Mortgage Hut, who have access to a wide panel of lenders, including specialists that aren't available on the high street and deal with landlords on a case-by-case basis.
If your buy-to-let mortgage is coming to an end and you're not sure if you can remortgage or you don't think you'll be able to, contact one of our expert advisers and they will be able to walk you through your available options and next steps to find you the right deal for your circumstance.