The different types of BTL product transfers
Table of contents:
Introduction
Like-for-like product transfers
Remortgages
Portfolio transfers
Early repayment charges
Other factors to consider
Conclusion
Introduction
If you're a buy-to-let (BTL) landlord, you may be considering transferring your mortgage to a new product. There are a few different types of BTL product transfers available, each with its own pros and cons. In this blog post, we'll take a look at the different types of BTL product transfers and help you decide which one is right for you.
Like-for-like product transfers
A like-for-like product transfer is the most common type of BTL product transfer. It involves transferring your existing mortgage to a new product with the same lender. This type of transfer is usually straightforward and there are no early repayment charges (ERCs) to pay. However, you may not be able to get a better interest rate with a like-for-like product transfer.
Remortgage
A remortgage is a type of BTL product transfer that involves switching to a new lender. This type of transfer can be more complex than a like-for-like product transfer, but it can also give you the opportunity to get a better interest rate. However, you may have to pay ERCs on your existing mortgage, so it's important to factor this into your decision.
Portfolio transfer
A portfolio transfer is a type of BTL product transfer that allows you to transfer multiple mortgages to a new lender. This can be a good option if you have several BTL properties and you want to simplify your finances. However, portfolio transfers can be more complex than other types of BTL product transfers, so it's important to get professional advice before you proceed.
Early repayment charges
As mentioned above, some types of BTL product transfers can involve ERCs. ERCs are fees that you have to pay if you repay your mortgage early. The amount of the ERC will depend on the terms of your mortgage agreement. If you're considering a BTL product transfer, it's important to factor in the cost of any ERCs before you make a decision.
Other factors to consider
In addition to the type of BTL product transfer, there are a few other factors that you should consider before you make a decision. These include:
The interest rate: Make sure you compare the interest rates of different BTL product transfers before you make a decision.
The fees: Some BTL product transfers come with fees, such as application fees or valuation fees. Make sure you factor these fees into your decision.
The terms and conditions: Make sure you read the terms and conditions of any BTL product transfer carefully before you sign anything.
Conclusion
There are a few different types of BTL product transfers available. The best type of transfer for you will depend on your individual circumstances. It's important to compare the different types of transfers and factor in all the costs before you make a decision.